The Indian government will be giving preference to ships built and registered in India for moving cargo imported by domestic entities.
Presently, only locally-registered vessels that bear the Indian tricolour have the right of refusal to match the lowest rate quotes by a foreign flagship for cargo transportation, says a report in Livemint. In addition, all Indian-flagged vessels are not necessarily Indian-made vessels.
"It is proposed in the draft action plan, that to promote Indian shipbuilding sector, we may give the first right of refusal to Indian-built, Indian-flagged vessels and second right of refusal may be given to the other Indian-flagged vessels," says R.K. Sen, assistant director in the shipbuilding and repair division of the ministry of shipping.
The country's coastal trade will also be reserved for Indian-registered ships, with foreign ships only hired to operate in Indian waters when Indian ships are unavailable and with the regulator's approval.
Leading private shipyards with vast shipbuilding capability like ABG Shipyard Ltd, Bharati Shipyard Ltd, Larsen and Toubro Shipbuilding Ltd and Pipavav Shipyard Ltd will benefit from this plan.
The country currently has 27 shipyards, including state-run entities like Cochin Shipyard Ltd, Hindustan Shipyard Ltd and Hooghly Dock and Port Engineers Ltd.
Presently, only locally-registered vessels that bear the Indian tricolour have the right of refusal to match the lowest rate quotes by a foreign flagship for cargo transportation, says a report in Livemint. In addition, all Indian-flagged vessels are not necessarily Indian-made vessels.
"It is proposed in the draft action plan, that to promote Indian shipbuilding sector, we may give the first right of refusal to Indian-built, Indian-flagged vessels and second right of refusal may be given to the other Indian-flagged vessels," says R.K. Sen, assistant director in the shipbuilding and repair division of the ministry of shipping.
The country's coastal trade will also be reserved for Indian-registered ships, with foreign ships only hired to operate in Indian waters when Indian ships are unavailable and with the regulator's approval.
Leading private shipyards with vast shipbuilding capability like ABG Shipyard Ltd, Bharati Shipyard Ltd, Larsen and Toubro Shipbuilding Ltd and Pipavav Shipyard Ltd will benefit from this plan.
The country currently has 27 shipyards, including state-run entities like Cochin Shipyard Ltd, Hindustan Shipyard Ltd and Hooghly Dock and Port Engineers Ltd.