Draft Coastal Shipping Licencing of Foreign Vessels Rules 2026

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-23122025-268748 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 825] NEW DELHI, FRIDAY, DECEMBER 19, 2025/AGRAHAYANA 28, 1947 MINISTRY OF PORTS, SHIPPING AND WATERWAYS NOTIFICATION New Delhi, the 19th December, 2025 G.S.R. 911(E).— "The draft of the Coastal Shipping (Licencing of Foreign Vessels) Rules 2026, which the Central Government proposes to make, in the exercise of the powers conferred by Sections 4(1), 4(3), 4(4), 5(3), 11(3), 11(4), 12(2), 26(1), 26(3), 30(2) read with Sections 39(1), 39(2)(a), 39(2)(b), 39(2)(c), 39(2)(i), 39(2)(j), 39(2)(k) respectively and Section 39(2)(q) of the Coastal Shipping Act, 2025, is hereby published for the information of all persons likely to be affected thereby; and notice is hereby given that the said draft shall be taken into consideration after thirty days from the date on which the copies of this notification as published in the Official Gazette are made available to the public. Objections or suggestions, if any, to these draft rules may be sent to the Under Secretary (ML), Ministry of Ports, Shipping & Waterways, Transport Bhawan, 1-Parliament Street, New Delhi-110001, or by email at usml-psw@gov.in within the period specified above. The objections or suggestions which may be received from any person concerning the said draft rules, within the period so specified will be considered by the Central Government" 1 Short Title, Commencement and Application (1) These rules may be called the Coastal Shipping (Licencing of Foreign Vessels) Rules, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. (3) These rules shall apply to (a) every foreign flag vessel participating in coastal trade, and (b) every foreign flag vessel chartered by a citizen of India or a non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership or any other entity as the Central Government may, by notification, specify in this behalf, proceeding to sea from a port or place in India, to a port or place outside India; or proceeding to sea from a port or place outside India, to a port or place in India or outside India. Provided that, no vessel which is chartered by an overseas citizen of India shall be required to obtain licence, if such vessel is chartered exclusively for operation outside India. 2 Definitions (1) In these rules, unless the context otherwise requires: (a) Act means the Coastal Shipping Act, 2025 (20 of 2025), as amended from time to time. (b) approved means approved or accepted by the Director General, (c) coasting trade means carriage of goods or passengers by sea from any port or place in India to any other port or place in India, or performing any service within coastal waters but shall not include fishing of any kind. (d) coastal waters means waters as defined in the Act. (e) Exim trade means carriage of goods or passengers by sea from any port or place in India to any other port or place outside India, or from any port or place outside India to any other port or place in India, or performing any service outside coastal waters and import of services. (f) licence means the licence issued by the Director-General under section 4 or section 11 of the Act. (g) licensee includes the owner or master or charterer or operator or any person operating the vessel under a licence granted to such vessel by the Director-General (h) port means port as defined in Merchant Shipping Act 2025 or Indian Port Act 2025. (i) principal officer means the principal officer of the Mercantile Marine Department referred to in the Merchant Shipping Act, 2025; (j) proper officer shall have the meaning assigned to it in clause (34) of section 2 of the Customs Act, 1962; (k) vessel includes every description of water craft, used or capable of being used in the marine environment, whether self-propelled or not, such as ship, boat, sailing vessel, fishing vessel, submersible, semi-submersible, hydrofoils, non- displacement crafts, amphibious crafts, wing-in-ground crafts, pleasure crafts, barges, lighters, mobile offshore drilling units and mobile offshore units. (1) Schedule means a Schedule to these rules; 3 Licence for coasting trade (1) No foreign flag vessel shall engage in coasting trade in the coastal waters, except under a licence granted by the Director-General. 4 Licence for exim trade and worldwide trade (1) No foreign flag vessel, chartered by a citizen of India or a non-resident Indian or an overseas citizen of India or a company or a co-operative society or a limited liability partnership or any other entity as the Central Government may, by notification specify in this behalf, shall be taken to sea from a port or place in India, to a port or place outside India; or proceeding to sea from a port or place outside India, to a port or place in India or outside India. 5 Application for licence (1) Application for the grant of a licence shall be made to the Director-General in the form and submit documents, as applicable, as per First Schedule. (2) The application for the grant of a licence shall indicate the class and category of licence requested based on the following description. a. Class of licence i. Voyage charter ii. Time charter iii. Contract of Affreightment b. Category of licence i. Export ii. Import iii. Coastal iv. Worldwide v. Offshore (3) A licensee, who intends to modify the particulars of the licence granted, may make an application to the Director- General as per Second Schedule. (4) A licensee, who intends to extend the period of licence granted due to delay in completion of the voyage, may make an application to the Director-General as per First Schedule. In this case, a fresh NoC is not required to be obtained. 6 Fees for licence (1) Payment of fee, shall be made as per Third Schedule as applicable for the type and duration of the licence. 7 Port clearance (1) Every foreign flag vessel engaged in coastal trade or exim trade requiring a licence as per the rules shall produce to the proper officer a valid licence issued by the Director General for the purpose of port clearance. 8 Verification and issuance of Licence: (1) The following details and documents shall be submitted to the Director-General for verification along with the application, namely:— a) declaration that the applicant has not engaged in violation of any of the provisions of the Act or rules in a previous instance; b) The licencee shall submit documents such as tenders, enquiries etc floated towards compliance to the Right of First Refusal (RoFR) to an Indian vessel requirements as specified at Fourth Schedule and compliance to Contract of Affreightment requirements as per Sixth Schedule. c) The licencee shall submit documents to confirm placement of Indian manning on board as per Seventh Schedule. (2) Upon satisfactory verification of compliance including items at sub clause (a), (b) and (c) a licence shall be granted in the form, as per Fifth Schedule and shall be subject to conditions, as deemed fit. 9 Suspension, revocation or modification of licence The Director-General may, by order in writing and for reasons to be recorded therein, suspend, revoke or modify a licence granted under the rules, if the licensee, or any person engaged by him— (a) violates any condition of the licence; or (b) fails to comply with any requirement under any law for the time being in force applicable to the vessel; or (c) fails to comply with a direction issued under section 35 of the Act; or (d) fails to pay any fine or serve any sentence imposed under the Act: Provided that the suspension, revocation or modification of licence under the rules shall not absolve the licensee from his obligation for payment of any fine or penalty, or undergoing any punishment, imposed on him under the Act. 10 Detention of a Foreign vessel under the Act. When a vessel is found to be in violation of the provisions of the Act or these Rules, the Principal Officer shall detail the vessel and a notice of detention shall be served as per the Merchant Shipping (Port State Control and Flag State Implementation) Rules, 2026. 11 Application for compounding of offences under the Act. An application for the compounding of an offence shall be made to the compounding officer in the form as per Ninth Schedule The sum to be paid for credit to the Central Government for compounding an offence on a case shall be determined by the compounding officer upon assessing the fine involved, the value of all fees or commission or payments received by the licensee of the vessel for all voyages conducted in contravention and incidental expenses. The compounding officer shall issue an order indicating the sum to be paid for credit to the Central Government towards compounding of offence. 12 Application for Appeal against penalties imposed. An application against the penalty imposed by the adjudicating officer shall be made in the form as per Tenth Schedule. 13. Repeal. The Merchant Shipping (Forms of Licences) Rules, 1960 notified vide GSR 280 dated 26th February,1960 and any other notification or general order issued by the Central Government in relation to licensing of vessels shall stand repealed. [F. No. SY-19014/182/2025-MG] RAJESH KUMAR SINHA, Special Secy. First Schedule : Application for the grant of a licence Second Schedule : Application for amendments to the licence granted Third Schedule : Fees for licence Fourth Schedule : Right of First Refusal (RoFR) Fifth Schedule : Licence format Sixth Schedule : Guidelines for Grant of Licence for Contract of Affreightment (COA) Seventh Schedule : Guidelines for Manning Requirements on Licensed Foreign Vessels Eighth Schedule : Certification and qualitative parameters for foreign flag vessels seeking Licence Ninth Schedule : Application for Compounding of Offence Tenth Schedule : Appeals against order of Adjudicating officer imposing penalty. FIRST SCHEDULE [ See rule 5(1) & 5(4) ] PROCEDURE FOR APPLYING FOR CHARTERING OF FOREIGN FLAG VESSELS 1. In line with the Government of India's objective of promoting "Ease of Doing Business", the Directorate General of Shipping has developed a dedicated online portal to facilitate the issuance of licenses for chartering of foreign-flag vessels. This digital initiative enhances transparency, accountability, and efficiency by streamlining the application process. In case of non-availability of the above portal, an application on the letter head with all details, documents and fees receipt shall be submitted to Director General. 2. For online application submission, login into the e-Samudra Portal (1) The applicant shall log into the e-Samudra Portal at https://esamudra.dgshipping.gov.in and select the option "Charter Permission for Foreign Flag Vessels." (2) In case of a new user, registration as a Charterer shall be made under e-Samudra Portal at https://esamudra.dgshipping.gov.in. 3. Application Workflow for online application (1) Log in to the e-Samudra portal and select the module "Charter Permission for Foreign Flag Vessels." (2) Determine whether the proposed chartering is to be carried out through a Global Tender. Global tender or open tender are those tenders for which a tender advertisement has been duly published in a national or international newspaper or commercial websites or website of the agency/organization/company floating the tender. a. If the proposed chartering is through global Tender i. Following fields shall be duly filled by the applicant as per Table 1 below. ii. Upload all required supporting documents as prescribed under paragraph 4 of this Schedule. iii. Preview the application before submission to ensure correctness of all particulars. iv. Make payment of the prescribed licence fee through Bharatkosh. v. Submit the application to the Director General through the e-Samudra portal. vi. Upon satisfactory verification of the application and documents, the Director General may grant approval for the chartering of the foreign flag vessel, after which the applicant may operate the vessel under the licence granted. b. If the proposed chartering is not through global Tender i. If the charter is not through a Global Tender, the applicant shall first fill the Enquiry Form for availability of Indian flag vessels, along with the payment of a processing fee of Rupees Five Thousand (Rs. 5,000). ii. Indian vessel owners may offer Indian flag vessels for chartering pursuant to such enquiry. iii. If an Indian flag vessel is selected for charter, the process shall stand concluded. iv. If no Indian flag vessel is available or selected, the applicant may proceed to fill the Application Form for Foreign Flag Vessel. v. Following fields shall be duly filled by the applicant as per Table 1 below. vi. Upload all required supporting documents as prescribed under paragraph 4 of this Schedule. vii. Preview the application before submission to ensure correctness of all particulars. viii. Make payment of the prescribed licence fee through Bharatkosh. ix. Submit the application to the Director General through the e-Samudra portal. x. Upon satisfactory verification of the application and documents, the Director General may grant approval for the chartering of the foreign flag vessel, after which the applicant may operate the vessel under the licence granted. 4. Submission of Documents Every applicant shall upload, along with the online application, a single consolidated PDF file containing the following documents, arranged in the order given below: 1. Online submitted application; 2. Proof of payment of fees (Bharatkosh receipt); 3. NOC or Tender document, whichever is applicable (including proof of tendering, if Global Tender has been followed); 1. Charter Party Agreement or Fixture Note; 2. Certificate of Registry; 6. P & I Club Certificate; 1. International Ship Security Certificate; 2. Safe Manning Document; 3. International Tonnage Certificate; 4. Classification or Class Certificate; 5. International Load Line Certificate; 6. International Oil Pollution Prevention Certificate; 7. Cargo Ship Safety Construction Certificate; 8. Cargo Ship Safety Equipment Certificate; 9. Cargo Ship Safety Radio Certificate; 10. International Sewage Pollution Prevention Certificate; 11. International Air Pollution Prevention Certificate; 12. Safety Management Certificate; 13. Document of Compliance; 14. LRIT Certificate; 15. Certificate of Fitness to Carry Chemicals (NLS Certificate), if applicable; 22. Compliance report to Qualitative parameter as per Eighth Schedule 23. IMO Crew List indicating compliance to the manning by Indian officer or crew as required as per Seventh Schedule, duly signed by the Master, with valid Passport, CoC and Seaman ID; and 24. Any other document, as may be required by the Directorate General of Shipping. Applicants shall ensure that all particulars such as quantity of cargo, laycan period, port of loading, port of discharge, and other details correspond accurately with the NOC or Tender documents. Quantities shall be indicated with proper units (e.g., MT, KBBL). Table 1 — Data Fields for Application (A) Ship Particulars +--------+------------------------------------------+ | Sr. No.| Field | +--------+------------------------------------------+ | 1 | IMO Number* | | 2 | Name of the Vessel* | | 3 | Ship Type* | | 4 | Flag* | | 5 | Dead Weight (DWT) | | 6 | Quantity of Cargo you propose to carry* | | 7 | Port of Loading* | | 8 | Date of Delivery* | | 9 | Age of Vessel (in years)* | | 10 | Gross Tonnage* | | 11 | Nature of Cargo* | | 12 | Laycan* | | 13 | Period of Charter (in Days)* | | 14 | Port Clearance Date | | 15 | Total Number of Crew as per Safe Manning | | | Document* | | 16 | Total Number of Indian Cadet* | | 17 | Total Number of Indian Crew (incl. | | | Cadet)* | | 18 | Indian Crew Percentage | | 19 | Indian Cadet Percentage | +--------+------------------------------------------+ (B) Address Particulars +--------+-----------------------------------+ | Sr. No.| Field | +--------+-----------------------------------+ | 1 | Applicant Name | | 2 | Applicant Phone Number | | 3 | Applicant e-Mail ID | | 4 | Country | | 5 | Door No./Flat No./Building Name | | 6 | Fax | | 7 | Lane/Street | | 8 | Web-Page URL | | 9 | Village/Town/City | | 10 | State | | 11 | Pin Code | +--------+-----------------------------------+ (C) Certificate Particulars +--------+-----------------------------------+ | Sr. No.| Field | +--------+-----------------------------------+ | 1 | Name of Certificates | | 2 | Status | | 3 | Issued By | | 4 | Date of Issue | | 5 | Date of Expiry | | 6 | Last Annual/Intermediate Survey | | | Date | | 7 | Remarks (if any) | | 8 | Upload | +--------+-----------------------------------+ SECOND SCHEDULE [ See rule 5(3)] PROVISIONS AND PROCEDURE FOR AMENDMENT TO LICENCE 1. General Provisions (1) Not more than two amendment requests shall be permitted in respect of the same licence. (2) Not more than three parameters can be amended in respect of a licence. Any requests for amendments involving more than three parameters shall be treated as a fresh case. (3) Any variation in laycan period exceeding one week on either side shall be treated as a fresh case. (4) A fresh case shall mean that the applicant shall be required to follow the procedure as per First Schedule. 2. Procedure for Applying for Amendment through the e-Samudra Portal (1) The applicant shall log into the e-Samudra Portal at https://esamudra.dgshipping.gov.in using valid credentials. (2) Navigate to the module "Dashboard" (3) Select the concerned vessel and click on the "Amendment" tab. (4) Make the required changes in the applicable data fields as permitted under the rules. (5) Upload supporting documents justifying the amendment, in a single consolidated PDF file. (6) Preview the application and ensure correctness of all entries. (5) Pay the prescribed amendment fee online via Bharatkosh. (6) Submit the amendment application electronically through the e-Samudra portal. (7) Upon satisfactory verification, the Directorate General of Shipping may approve the amendment and issue an updated Licence Certificate, which may be viewed and downloaded from the portal under the “Certificate” section. 3. In case of non-availability of the above portal, an application on the letter head with all details, documents and fees receipt shall be submitted to Director General. THIRD SCHEDULE [See rule 6 (1)] PROCEDURE AND FEES FOR LICENCE AND AMENDMENT 1. Procedure for Payment of Fees through Bharatkosh is as under:- 2. Visit https://bharatkosh.gov.in. 3. Click on "Non-Registered Users." 4. Under Depositor's Category, select "Corporate/Commercial Undertaking." 5. Under Purpose, select "REGISTRATION AND OTHER FEES PAYABLE TO PAO SHIPPING MUMBAI (PAYMENT TO DG SHIPPING MUMBAI).” 6. Under Payment Type, select "PAYMENT TO DG SHIPPING MUMBAI." 7. Under Ministry, select "SHIPPING.” 8. Enter the applicable amount. 9. Under Remarks, fill the following details: a. Name of Vessel b. Name of Charterer c. Online Application Number and Date d. Laycan e. Fee for ship licence / chartering permission / SPL (mention as appropriate) 9. Proceed further to complete the payment process. 10. Fees Applicable for Various Types of Chartering Permission The fee structure applicable for issuance of chartering permissions or licences for foreign-flag vessels, as per SD Circular No. 02 of 2010 dated 04.02.2010 and its subsequent amendments, is illustrated below in Table 2: Details of Fees. Table 2: Details of Fees +------------------------------+-------------------------------------------------+---------------------------------------------+ | Type of Chartering Permission| Fees Applicable | Example Calculation | +------------------------------+-------------------------------------------------+---------------------------------------------+ | Fees for enquiry for Indian | Rs. 5000/- per application | - | | Vessel | | | | Import/Export on Single | Rs. 40,000/- for the first 30 days and for | 40 or 60 days → Rs. 80,000/- | | Voyage Basis | every contiguous block of 30 days thereafter, | | | | including fractions in terms of days. | | | Import/Export on Time | Rs. 40,000/- for the first 30 days, plus Rs. | 40 days → Rs. 55,000/- [Rs. 40,000 + (Rs. | | Charter Basis | 1,500/- per day for any fraction beyond the | 1,500 × 10)] | | | first 30 days. | | | Single Voyage Coastal | Rs. 60,000/- for the first 30 days and for | 40 or 60 days → Rs. 1,20,000/- | | Permission (SVCP) | every contiguous block of 30 days thereafter, | | | | including fractions. | | | Coastal on Time Charter | Rs. 60,000/- for the first 30 days; any | 40 days → Rs. 95,000/- [60,000+20,000 + | | Basis | fraction beyond these blocks is charged at Rs. | (1,500 × 10)] | | | 1,500/- per day plus Rs. 20,000/- for the | | | | fractional period. | | | Worldwide Time Charter | Rs. 70,000/- for the first 30 days; any | 40 days → Rs. 1,15,000/- [70,000 + 30,000 | | | fraction beyond these blocks is charged at Rs. | + (1,500 × 10)] | | | 1,500/- per day plus Rs. 30,000/- for the | | | | fractional period. | | | Offshore Operation (SPL) | Rs. 40,000/- per ship per month for foreign- | 40 days → Rs. 80,000/- [Rs. 40,000/- × 2 | | | flag vessels operating in offshore operations. | months] | | Late Fees | Rs. 50,000/- | — | | Amendment Fees | Rs. 10,000/- | — | +------------------------------+-------------------------------------------------+---------------------------------------------+ 3. Additional Levy for Offshore Vessels 4. In addition to the fees specified in Table 2 above, a separate levy shall be charged on charterers of offshore vessels that are not classed with the Indian Register of Shipping (IRS) and are more than 25 years of age. The levy shall be payable to the Directorate General of Shipping as under: a. For self-propelled offshore service vessels of all descriptions—such as Anchor Handling Tugs, Tugs, Supply Vessels, Support Vessels, etc.—the levy shall be one percent (1%) of the rate of charter hire per day in US dollars multiplied by the number of days for which charter hire permission is issued. b. For non-propelled vessels, such as Dumb Barges, Pontoons, Non-propelled Accommodation Barges, Jack-up Rigs, etc., the levy shall be twenty-five percent (25%) of the amount prescribed under sub-clause (a) above. The payment of the levy prescribed herein shall be made by following the steps mentioned in Part 1 of this schedule. FOURTH SCHEDULE [See rule 8(1)(b)] GUIDELINES FOR EXERCISE OF RIGHT OF FIRST REFUSAL (ROFR) 1. Background and Objective To strengthen the Indian shipping ecosystem and promote self-reliance in maritime transportation, a structured framework has been established for the exercise of the Right of First Refusal (ROFR) during the chartering of foreign- flag vessels. The objective is to ensure priority to Indian-flagged and Indian-built vessels, support indigenous shipbuilding, and enhance employment opportunities for Indian seafarers while ensuring competitive pricing in tendering processes. 2. Chartering or engagement of foreign flag vessels done through tendering process, for all types of requirement. 2.1. The chartering/engagement of vessels through “tender process” as mentioned above shall only be applicable for open/global tenders and chartering/engagement by other means shall be considered as “chartering/engagement through non-tender processes”. The “tender process” shall be considered valid within the following definition: 2.1.1. Tenders shall be open or global tender, for which a tender advertisement has been duly published in a national or international newspaper or commercial websites or website of the agency/organization/company floating the tender; 2.1.2 Tender contains technical specifications and commercial terms and conditions of the vessel provided in the tender advertisement. If there is a dispute relating to technical specifications of the vessel given in the tender advertisement, the matter may be referred to DGS for decision as to whether the Indian vessel with a slight difference in specifications should be chartered/engaged, and not the foreign flag vessel. As far as practicable, this decision will be taken after discussion with the concerned parties. 3. Right of First Refusal: "Right of first refusal" is a right which accrues to a bidder in a tendering process, who offers a vessel from the category listed at Para 3.3.4, subject to his matching of the lowest rate offered by a bidder who offers a vessel not listed under Para 3.3.4. The order of preference for right of first refusal will be as indicated at para 3.3.4. This right is conferred based upon the practices of the industry, and the deliberate intention of the Central Government towards encouragement and development of the Indian ship- building industry and the Indian shipping industry. 3.1. Unless the vessel offered is successful in the evaluation of technical bid, the bidder concerned will not be eligible to exercise the Right of First Refusal under this circular. 3.2. Whenever charter/engagement of vessel is undertaken through a tender process specified in Para 20, the provisions of these guidelines are required to be incorporated. Whether the guidelines have been incorporated in any tender or not, the said guidelines would be deemed to have been incorporated as a part of the tender documents. 3.3. The instances under which the ROFR may be exercised are: 3.3.1. The L1 bidder is a Foreigner or an entity registered outside India, offering a vessel not listed at Para 3.3.4. 3.3.2. The L1 bidder is a Citizen of India OR company registered in India OR Society registered in India with a vessel not listed at Para 3.3.4. 3.3.3. From amongst the bidders eligible to exercise ROFR, the priority to exercise this Right would lie in sequence mentioned in Para 3.3.4 below and in case more than one bidder is available in a particular category, then from the lowest to the highest bidder within the margin of purchase preference. The exercise of ROFR would cease as soon as an eligible bidder in order of priority matches L1. The first priority would be given to any bidder who offers an Indian built, Indian flagged and Indian owned vessel. In the absence or unavailability of Indian built, Indian flagged and Indian Owned vessel, the ROFR will move to Foreign built, Indian flagged, Indian owned vessel and then to Indian built, foreign flagged and foreign owned vessel. 3.3.4 For further clarity the grant of RoFR would be as follows:- (a) Indian built, Indian flagged and Indian owned, (b) Indian built, Indian flagged and Indian IFSCA owned, (c) Foreign built, Indian flagged and Indian owned, (d) Foreign built, Indian flagged and Indian IFSCA owned, (e) Indian built, foreign flagged and foreign owned Provided that 1. All vessels flying the flag of India (ie. registered in India) up to the date of issue (mid night of the date) of new circular by the Director General of Shipping, shall be deemed to be Indian built vessels and will fall in category (a) above. 2. The Foreign flagged vessels permitted by the DG Shipping, under section 406 of the MS Act, 1958, for chartering by an Indian citizen/company/society, who is building a ship in an Indian shipyard for registration under Indian flag, as a temporary substitute for the Indian Ship under construction, meeting the following two condition, shall be deemed to fall under category [a] above: a) The 25% of the contract money has been paid to Indian shipyard b) The 50% of the hull fabrication has been completed, as may be certified by a Recognized Organization The duration of licences to such chartered vessel shall be limited to period of building of the Ship, as mentioned in the shipbuilding contract." 3. Where a bidder offering a vessel not falling within the categories specified in para 3.3.4 gives an undertaking to convert such vessel to the categories specified in para 3.3.4 (a) or (b) prior to commencement of operations but later than the price bid opening, such vessel can be considered only when and if a bidder offering any vessel falling within the categories specified in para 21.3.4 has failed to match the lowest price. In such event the tender-awarding authority shall incorporate deterrent penalties in the award of tender to ensure that the bidder giving the undertaking will convert the vessel to any of categories specified in para 3.3.4 (a) or (b) before commencement of operations as undertaken. 3.3.5. Further, RoFR shall be applicable to all inquiries for in-charter of foreign flagged vessels within a 20% margin of purchase preference (price band) i.e. the maximum extent to which the price quoted by an Indian Company may be above the L1 for the purpose of purchase preference. 3.3.6. In case none of the bidders eligible to exercise RoFR matches the L1 quote, then the charter shall be awarded to the L1 bidder. 4. The bidder who exercises RoFR should meet the commercial requirement by matching the lowest Composite Effective Price. It is further clarified that there shall be no price preference in favour of any vessel. The Composite Effective Price is the derived figure from the various price inputs submitted by a bidder/participant in a tender process, wherein all the costs/inputs are summarized. While working out such Composite Effective Price, inputs such as daily hire/daily rate, mobilization/demobilization charges, call out rates and conversion charges etc. are taken into account. FIFTH SCHEDULE [See rule 8(2)] Format of Licences 1. In order to ensure uniformity and transparency in the issuance of licences and approvals under these Rules, the following standard formats shall be adopted by the Directorate General of Shipping, Mumbai. These formats are to be used for various types of chartering permissions and related approvals as detailed below. Form-A: In-Principle Approval for Chartering of Vessels under Contract of Affreightment (CoA) No. _________________ Dated: _______________ To/ सेवामे M/s. C/o M/s. Subject: In-principle approval for chartering of vessels under Contract of Affreightment (CoA) for Shipment from "___________" to "___________" Sir, With reference to your application dated ____________ on the above subject, I am directed to inform that the Competent Authority has accorded 'In-principle approval' for transportation of ____ Shipments each of quantity about ____________ of ____________ from "___________" to "___________" on Contract of Affreightment (COA) during the period from ____________ to ____________. Since the payment for 'In principle' approval for COA has already been made, necessary approval for each shipment should be taken after making the balance payment of 50% as and when the vessel (s) is/ are finalized during the period of contract from _______________. Signature of Issuing Authority Form-B: Chartering Permission-cum-Licence for Foreign Flag Vessels (Import / Export / Coastal) Chartering Permission-cum License सं./No._________________ Dated: _______________ To/ सेवा मे मेसर्स / M/s C/o M/s Subject : Grant of Charter permission/License for foreign flag vessel "_________". Sub.: Grant of Charter permission/License for foreign flag vessel "". With reference to your application dated ____________ on the captioned subject, the permission for chartering of the foreign flag ship'_______________" is accorded as per the details mentioned below.: +----+----------------------------+ | 1. | जलयान का नाम/Name of vessel| | 2. | आईएमओ संख्या/IMO Number | | 3. | ध्वज/Flag | | 4. | अनुमति का प्रकार/Type of | | | permission | | 5. | स्वामी का नाम/Name of the | | | Owner | | 6. | डिस्पोनेंट स्वामी/Disponent | | | Owner | | 7. | चार्टरर का नाम/Name of | | | Charterer | | 8. | माल/Cargo | | 9. | मात्रा/Quantity | | 10.| लेकन/Laycan | | 11.| चार्टर की अवधि/Period of | | | Charter | | 12.| लोर्डिंग का पत्तन/Port of | | | loading | +----+----------------------------+ +----+--------------------------+ | 13.| माल उतारने का पत्तन/Port | | | of discharge | | 14.| पी एंड आई क्लब/P & I Club | | 15.| क्लास /Class | +----+--------------------------+ 16. शर्तें/Conditions 1. यह अनुमति/लाइसेंस इस शर्त के अधीन है कि आप चार्टर/लाइसेंस अवधि के दौरान हर समय वैध सभी लागू प्रमाणपत्र और पोत के पी एंड आई क्लब प्रमाणपत्र को अपने पास रखेंगे/This Permission/License is subject to the condition that you shall keep all applicable certificates and P&I club certificate of the vessel, valid at all times during the charter/License period. 2. भारतीय जलक्षेत्र में परिचालन करते समय पोत पर उपयोग किए जाने वाले समुद्रीय मोबाइल वी-सैट टर्मिनल को 14.12.2018 को अधिसूचित संचार मंत्रालय के उड़ान और समुद्री संपर्क नियम, 2018 में निर्दिष्ट आवश्यकताओं का अनुपालन करना होगा/Maritime Mobile V-SAT terminal used on-board the vessel while operating in Indian waters needs to Comply with requirements specified in the Flight and Maritime Connectivity Rules, 2018 of the Ministry of Communication notified on 14.12.2018. 3. उपरोक्त विवरण में किसी भी परिवर्तन से लाइसेंस अमान्य हो जाएगा/ Any changes in the above particulars renders the license invalid. Signature of Issuing Authority Form-C: Chartering Permission for Offshore / Specified Period Licence (SPL) चार्टरिंग अनुमति-सह लाइसेंस Chartering Permission-cum License सं./No._________________ Dated: _______________ To/ सेवा मे मेसर्स /M/s. --- C/o M/s --- Subject : Grant of Charter permission/License for foreign flag vessel "-------". Sub.: Grant of Charter permission/License for foreign flag vessel "-------". +----+---------------------------------------+ | 1. | जलयान का नाम/Name of vessel | | 2. | आईएमओ संख्या/IMO Number | | 3. | ध्वज/Flag | | 4. | अनुमति का प्रकार/Type of permission | | 5. | अपतटीय कार्य करने वाली कंपनी का नाम/ | | | Name of the company performing | | | offshore work | | 6. | अवधि / Period | | 7. | संचालन का क्षेत्र / Area of operation | | 8. | पी एंड आई क्लब/P & I Club | | 9. | क्लास /Class | +----+---------------------------------------+ 10. शर्तें/Conditions 1. यह अनुमति/लाइसेंस इस शर्त के अधीन है कि आप चार्टर/लाइसेंस अवधि के दौरान हर समय वैध सभी लागू प्रमाणपत्र और पोत के पी एंड आई क्लब प्रमाणपत्र को अपने पास रखेंगे/This Permission/License is subject to the condition that you shall keep all applicable certificates and P&I club certificate of the vessel, valid at all times during the charter/License period. 2. भारतीय समुद्र में परिचालन करते समय पोत पर उपयोग किए जाने वाले समुद्रीय मोबाइल वी-सैट टर्मिनल को 14.12.2018 को अधिसूचित संचार मंत्रालय के उड़ान और समुद्रीय संपर्क नियम, 2018 में निर्दिष्ट आवश्यकताओं का अनुपालन करना होगा/Maritime Mobile V-SAT terminal used on-board the vessel while operating in Indian waters needs to Comply with requirements specified in the Flight and Maritime Connectivity Rules, 2018 of the Ministry of Communication notified on 14.12.2018. 3. उपरोक्त विवरण में किसी भी परिवर्तन से लाइसेंस अमान्य हो जाएगा / Any changes in the above particulars renders the license invalid. +----+---------------------------------------+ | 4. | सामान्य पोत चालन कर्मीदल के अलावा .. | | | व्यक्तियों से अधिक न ले जाए जाएं / Not | | | to carry more than xx persons other | | | than normal ship operating crew. | +----+---------------------------------------+ +----+---------------------------------------+ | 11.| डीपीए का नाम और संपर्क विवरण/Name and | | | contact details of DPA | +----+---------------------------------------+ उपर्युक्त विषय पर आपके आवेदन के संदर्भ में आपको यह सूचित करने का मुझे निदेश हुआ है कि सक्षम प्राधिकारी द्वारा विदेशी ध्वज पोत ‘ ____________" को भारतीय समुद्र में नीचे दिए गए विवरण के अनुसार चलाए जाने हेतु अनुमति प्रदान की हैः With reference to your application on the captioned subject, I am directed to inform you that the competent authority has accorded permission for operation in Indian waters for the foreign flag ship '____________________" as per the details mentioned below: Signature of Issuing Authority SIXTH SCHEDULE [ See rule 8(1) (b) ] Guidelines for Grant of Licence for Contract of Affreightment (COA) 1. Applicability of Contract of Affreightment (COA) A Contract of Affreightment (COA) applies in circumstances where transportation of cargo is required on a long-term, repetitive, or continuous basis involving multiple voyages under a single commercial agreement, without the need to nominate a specific vessel at the time of contracting. It is used when a fixed quantity of cargo must be moved over several months or years, where vessel deployment needs to remain flexible, or where the charterer seeks stable freight rates over the duration of the contract. COAs are typically required bulk commodities that cannot be moved in a single voyage or must be carried in multiple lots due to operational or commercial considerations. The COA framework ensures long-term cargo commitments are executed through competitive tendering with an opportunity for Indian tonnage to participate under the Right of First Refusal (ROFR), and DG Shipping approval is required for the entire period of cargo movement under the COA. 2. Guidelines for the purpose of Granting of licence for vessels on COA I. The period of licence on COA proposals shall normally be limited to one year. However, in exceptional cases where the charterer can furnish good and sufficient reasons, it may be extended for a further period of 2 years. The maximum permissible period shall be 3 years. II. The charterer should circulate the enquiry/or invite International Competitive Bidding (ICB) from shipowners including Indian shipowners including Indian shipowners through INSA and Indian Coastal Conference Shipping Association (ICCSA). III. In case no offer is received from the Indian shipowners within 2 stipulated working days, the charterer shall be free to apply to Director General for licence in favour of foreign flag vessels proposed to be chartered. IV. The Indian shipowners, who participate in the bid, shall be entitled to exercise the right of first refusal subject to the following conditions. Those shipowners who have not participated in the bid shall not have any right to claim the same at a later stage:- i. The Indian flag vessels offered by the Indian shipowners should broadly satisfy all the technical and commercial requirements of the trade; ii. The Indian shipowners shall be eligible to exercise the right of first refusal only if they match the lowest price quoted against foreign flag vessels. In case more than one party matches the lowest rate, the eligible party to participate in the bid shall be decided on the basis of the original rate quoted; iii. Indian shipowners shall identify and offer their own vessel(s) for the entire performance of the proposed COA. In case the vessel(s) offered by the Indian shipowners is under construction, such offers shall be considered only against an undertaking furnished by Indian shipowners that the vessel(s) shall be converted to Indian flag prior to the commencement of the contract; iv. In the absence of adequate number of Indian flag vessels, chartering of foreign flag vessels by Indian shipowners shall be permitted upto 5/6th (five sixth) of the total requirement of the quantity of the contract. In case, Indian shipowners do not have 1/6th (one sixth) of tonnage required, they will not be entitled to exercise the right of first refusal. The charterer will inform the Director General, the quantity/volume of tonnage moved by Indian flag vessel versus foreign flag vessel on monthly basis to ensure fulfilment of this condition at the time of completion of the contract. v. In case the "right of first refusal" is exercised by the Indian shipowner, it shall be mandatory to deploy the same vessel(s) for the entire performance of the COA and Indian shipowner shall not be allowed to offer the same vessel(s) for any other COA. In contingent situations, Indian shipowner will be allowed to substitute the vessel(s) with other Indian flag vessel(s) from his own fleet, but not with any foreign flag vessel; vi. To maintain transparency the charterer shall keep proper documentation to ensure that all records are maintained correctly to demonstrate fulfilment of 10% price difference criteria for right of first refusal. V. The charterer shall submit the proposal for "in principle approval" after satisfying the above conditions and supported by necessary documents and requisite processing fee for the entire period of COA. The initial fee shall be payable for estimated voyages as applicable in case of voyage permission. The charterer should furnish details on the type and number of vessels, nature and quantity of cargo proposed to be carried, loading and discharge ports, period of contract, etc. at the initial stage itself. VI. During the execution of the COA, the charterer shall submit the final proposal to the Director General as and when the vessel(s) is/are identified supported with the requisite documents. At this stage the charterer shall pay 50% of voyage permission fee. VII. (i) If INSA or any of the Shipping Companies bring to the notice of the Director General that a charterer has violated any of the provisions of these Guidelines while chartering foreign-flag vessels, the Director General after due verification of the complaint shall take appropriate measures to penalize the charterer concerned as he may consider necessary to prevent recurrence of such events. (ii) If there is a doubt that technical specifications of the vessel given in the enquiry / or ICB were drawn up with the deliberate intention of avoiding Indian-flag vessels, the matter may be referred to the Director General for decision as to whether the Indian vessel with minor difference in specifications should be chartered, and not the foreign flag vessel. As far as practicable, this decision will be taken after discussion with the concerned parties. (iii) If past payment due on charter of Indian-flag ships is not cleared in time, the Director General may decide that no further licence is granted to applicants who are in such arrears. VIII. In case of dispute on any of the provisions contained in these guidelines, the decision of the D.G. Shipping shall be final and shall be binding on all the parties concerned. SEVENTH SCHEDULE [ See rule 8 (1) (c) ] Guidelines for Manning Requirements on Licensed Foreign Vessels 1. Applicability This Schedule applies to all foreign-flag vessels licensed under these Rules for engagement in coastal trade, offshore operations, or related maritime activities in Indian coastal waters. 2. Manning Requirements (a) Licence period exceeding 30 days but up to 90 days: A minimum of one-third (1/3) of the total crew (officers and ratings), as per Safe Manning norms or actual deployment—whichever is higher—shall be Indian nationals holding valid Indian certificates. (b) Licence period exceeding 90 days: A minimum of one-half (1/2) of the total crew (officers and ratings), as per Safe Manning norms or actual deployment—whichever is higher—shall be Indian nationals holding valid Indian certificates. 3. Engagement of Trainee Cadets (a) Of the Indian crew engaged under clauses (a) and (b) above, a minimum of fifteen percent (15%) shall be trainee cadets or trainee officers, distributed as far as practicable equally between the navigational and engineering departments. (b) Shipowners may, at their discretion, replace any number of Indian crew engaged under clauses (a) and (b) above with Indian cadets. 4. Cumulative Charter Period Where the licence period is not continuous, including cases involving multiple charterers, the above manning requirements shall apply whenever the cumulative licence period for that vessel exceeds 30 or 90 days, respectively, in a calendar year. The manning condition shall take effect from the day the threshold is crossed. 5. Calculation Method For determining the number of Indian personnel required (officers and crew, excluding cadets), any fractional number shall be rounded up to the next higher integer. EIGHTH SCHEDULE [ See rule 5(1) and First Schedule] Certification and qualitative parameters for foreign flag vessels seeking Licence 1. Foreign flagged vessels requiring licence shall be complying with the certification and qualitative parameters as below at the time of applying for the licence. Foreign Flag vessels exceeding the entry age range shall not be considered for issuance of license. Vessels within the entry age range shall be in possession and compliance with the certification and qualitative parameters at the time of application of licence. 2. The following requirements shall not be applicable to Passenger Vessels, FSRU, FPSO, Highly Specialized vessels (inter alia, Heavy Lift Installation Barge, crane barge, Pipe laying vessel, cable laying vessel, Research Vessel and Floating Docks), Dredgers, DP2 Diving Support Vessels, DP2 Well Stimulation Vessels and Drilling/Production units certified under MODU/SPS Code, as applicable. 3. The age of the vessel shall be computed from the "date of delivery" as mentioned in the Cargo Ship Safety Construction Certificate or any other Statutory Certificate issued under IMO Convention/Code. Permitted Age Range | Certification and Qualitative Parameter for Foreign Flag vessels at the time of A | application | B -----------------------------+---------------------------------------------------------------------------------- 1. OIL TANKERS | When below 15 years of age | Vessel is holding valid class and statutory certificates including valid P&I Insurance. | Provided, When between 15 and 20 years | (i) Vessel is holding valid class and statutory certificates including valid P&I Insurance, and | (ii) CAP 1 rating for Hull and CAP 2 for Machinery & cargo systems issued by an RO of Gol. When, 20 years of age or above.| not permitted 2. BULK CARRIER/GENERAL CARGO VESSELS (Other than Dedicated Container Vessel) When below 15 years of age | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When between 15 and 20 years | Provided, | i. Vessel is holding valid class and statutory certificates including valid P&I Insurance. | ii. Valid Rightship Inspection rating of not less than three (3). When 20 Years of age or above| not permitted 3. OFFSHORE FLEET (Other than those addressed separately under this Order) When below 15 years of age | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When between 15 and 20 years | Provided, | (i) Vessel is holding valid class and statutory certificates including valid P&I Insurance, and | (ii) valid OVID inspection of the vessel done within last one year. When 20 Years of age or above| Not Permitted. 4. SPECIALISED VESSELS (Diving Support, Geo-technical, Pipe laying, Seismic Survey, Well Stimulation vessel etc) When below 15 Years of age | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When between 15 and 20 years | Provided, | (i) Vessel is holding valid class and statutory certificates including valid P&I Insurance, and | (ii) valid OVID inspection of the vessel done within last one year When 20 Years of age or above| not permitted 5. DEDICATED CONTAINER VESSELS AND DEDICATED CEMENT CARRIERS Up to 20 years | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When 20 Years of age or above| Not Permitted. 6. GAS/CHEMICAL CARRIERS When below 20 years of age | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When between 20 and 25 years | Provided; | (i) Vessel is holding valid class and statutory certificates including valid P&I Insurance, and | (ii) CAP 1 rating for Hull and CAP 2 for machinery and cargo systems from an RO of Gol. When 25 Years of age or above| Not Permitted. 7. HARBOUR TUGS up to 20 years | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When 20 Years of age or above| Not Permitted. 8. AHT's & TUGS INVOLVED IN LONG TOW up to 15 years | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When between 15 and 20years | Provided, | i. Vessel is holding valid class and statutory certificates including valid P&I Insurance. | ii. Valid OVID or TIQ inspection of the vessel done within last one year When 20 Years of age or above| Not Permitted. 9. NON-SELF-PROPELLED OCEAN-GOING CARGO CARRYING BARGES (Dumb Barges) up to 20 years | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When 20 Years of age or above| Not Permitted. 10. FOR VESSELS, OTHER THAN ABOVE (except those exempted at para 11) up to 20 years | Vessel is holding valid class and statutory certificates including valid P&I Insurance. When 20 Years of age or above| Not Permitted. NINTH SCHEDULE [ See rule 11] To The [Competent Authority] [Designation, e.g., Principal Officer] [Office Address] Subject: Application for Compounding of Offence under Section [relevant section] of the [Act name] Respected Sir/Madam, I, [Full Name], son/daughter of [Father's Name], residing at [Address], hereby submit this application for compounding of offence under Section [relevant section] of the [Act name]. 1. Details of Applicant - Full Name: - PAN/Registration No.: - Address: - Contact No./Email: 2. Details of Offence - Nature of offence committed: - Relevant provisions of law violated: - Date(s) of commission of offence: - Brief facts of the case: 3. Status of Proceedings - Whether prosecution has been launched with details. - Stage of proceedings (if launched) with details - Details of Order issued by Adjudicating officer 4. Reasons for Seeking Compounding - Explain circumstances of the case - submit evidence as to no malafide intention, - submit details of cooperation extended to authorities, - payment of dues, etc. 5. Compliance Status - Taxes/levies/penalties paid with details. - Any pending dues with details of order issued 6. Details of payments and remunerations or charges received by the applicant due to such engagement with details 7. Undertaking I undertake to pay the compounding charges as may be determined by the authority and to comply with all conditions imposed. I therefore humbly request that the offence may kindly be compounded as per law. Place: Date: (Signature of Applicant) Name: Designation (if applicable): Seal (if applicable) Tenth Schedule [See Rule 12] Appeals against order of Adjudicating officer imposing penalty. Appeal. (1) Any person aggrieved by an order of the Adjudicating Officer under sub-section (1) of section 30 of the Act may prefer an appeal to the Appellate Authority under sub-section (2) of section 30 of the Act in the format specified at Form-I below. (2) The appeal shall be filed with the Appellate Authority within a period of thirty days from the date of receipt of the order. (3) The appeal shall be accompanied by a copy of the order of the Adjudicating Officer issued sub-section (1) of section 30 of the Act with mention of a clear statement of facts appealed against, the grounds for appeal, and the relevant section of the Act. 4) The appeal shall be filed in triplicate by the appellant in person or by his duly authorized representative in writing or by an advocate duly appointed in this behalf, or by registered post or speed post or through electronic means. (5) The appeal sent by post shall be deemed to have been filed to the Appellate Authority on the day it is received by the office of Appellate Authority. (6) If on scrutiny, the appeal is found to be in order, it shall be admitted and in case the appeal is found to be defective, the Appellate Authority shall intimate the appellant about the defects and allow him to rectify the defects within a period of fifteen days and if the appellant fails to rectify such defects within the time-period, the Appellate Authority may by order and reasons to be recorded in writing, decline to register such appeal and communicate such refusal to the appellant within a period of seven days from the date of refusal. (7) A copy of the appeal along with notice shall be served by the Appellate Authority on the respondent, by hand or by registered post or speed post or through electronic means. (8) Respondent may, within a period of seven days of service of notice of appeal, file a reply to the Appellate Authority. (9) The Appellate Authority may call for the records relating to the proceedings from the Adjudicating Officer. (10) The Appellate Authority may, after giving the parties to the appeal an opportunity of being heard, pass such orders as it may consider appropriate. (11) The Appellate Authority shall dispose of the appeal within a period of thirty days from the date of admission of the appeal. 4. Order and penalties. - (1) Every order under these rules, shall be dated, signed and affixed with the seal of Appellate Authority before it is communicated to all the parties. (2) All sums realised by way of penalties under these rules shall be credited to the Consolidated Fund of India. 5. Orders passed by the Appellate Authority. - (1) Subject to sub section (3) of section 30, the Appellate Authority may (a) confirm or modify or set aside or reverse the orders appealed against under sub-section (2) of section 30 of the Act; (b) confirm or reduce or enhance or set aside the penalty imposed by the order or impose any penalty in accordance with the Act where no penalty was imposed by the principal officer. Provided that no order imposing an enhanced penalty shall be made unless the appellant has been given a reasonable opportunity of making a representation against such enhanced penalty and reasons for such enhancement have been duly recorded in writing; and (c) pass such orders as it may deem fit in the circumstances of the case. 6. Effect of orders passed by the Appellate Authority. - Every order passed by the Appellate Authority shall be final. Form-I. APPLICATION TO THE APPELLATE AUTHORITY 1. Details of the Appellant: 1.1. Name of the Appellant: 1.2. Designation of the Appellant: 1.3. Address of the Appellant: 1.4. Telephone/ Mobile No. of the Appellant: 1.5. Email Id. of the Appellant: 1.6. Name, Address, Telephone/Mobile No. and Email Id. of the Legal Representative of the Appellant, if any: 2. Details of the Order appealed against under sub-section (2) of section 30 of the Coastal Shipping Act, 2025: 2.1. Date: 2.2. Number: 2.3. Name of Adjudicating Officer: 2.5. Section of the Coastal Shipping Act, 2025 to which the contravention has reference: 2.6. Penalty imposed by the Adjudicating Officer: 3. Details of Appeal: 3.1. Statement of Facts :( Provide a concise statement of facts in a chronological order and with paragraph numbers containing an elaboration of issues, including the questions of the law arising in the appeal, each paragraph should deal with as far as possible a separate issue). 3.2. Description of Grievance: (Provide a concise description of grievance elaborating issues with the order of the adjudicating officer sub-section (1) of section 30 of the Coastal Shipping Act). 3.3. Grounds of Appeal: (Provide clear grounds of the appeal and concise description of the appeal and the relevant legal provisions, if any, relied upon.). 3.4. Evidence: (Provide evidence for the justification/grounds for appeal and in case of more than one evidence, an indexed chronological list thereof). 3.5. Prayer: (Clearly stipulate the reliefs sought). Place: Date: (Signature of Appellant) Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. GORAKHA Digitally signed by GORAKHA NATH YADAVA NATH YADAVA Date: 2025.12.23 12:28:29 +05'30'