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Policy/Procedure for Chartering Ships

The Minister of Steel, Shri Beni Prasad Verma has said that as per the existing policy of the Government, all import contracts are to be finalized on Free on Board (FOB) basis in respect of Government owned/ controlled cargoes including Public Sector Undertakings under them. The shipping arrangements are centralized in TRANSCHART, the Chartering Wing of the Department of Shipping as per the policy/ procedure adopted by them. Enquiries are forwarded to TRANSCHART by Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) for finalizing shipping arrangement on the basis of the requirement of cargo/ shipment. The enquiry is then processed by TRANSCHART and after establishing/discovering the rate, detailed offer is sent to the companies for acceptance and the shipping arrangement is concluded on the basis of the decisions conveyed by the companies. The procedure also covers forwarding of the ship details to the supplier for their confirmation on suitability of the ships at the load port. In case of any departure there from, prior permission is required to be obtained from the Chartering Wing of the Ministry of Shipping (TRANSCHART) on a case to case basis.

In a written reply in the Rajya Sabha today Shri Verma said, the Government has approved a proposal allowing SAIL and RINL to undertake direct chartering of ships without going through TRANSCHART on 16.05.2013. The arrangement is expected to give benefits of flexibilities flowing through direct chartering of operations and to bring in comprehensive logistics solution along with financial benefits.

The dispensation for chartering vessels directly without routing through TRANSCHART would facilitate a level playing field to SAIL and RINL at par with their private counterparts and thereby derive benefits through tailor made solutions for cargo operations through full fledged and intense competition of a dynamic global shipping market, the Minister added.

Tags: FOBGovernment-owned corporationMinister of SteelRajya SabhaRashtriya Ispat NigamRINLShippingSteel Authority of India Limited

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