The Directorate General of Shipping in an order on 27th Feb 2023 withheld the licences of vessels (oil tankers and bulk carriers) that are older than 25 years. This step has been taken to majorly cut emissions and decrease the average age of the country’s fleet.
The government has also barred the purchase of vessels that are more than 20 years old. According to the existing guidelines, the purchase of vessels that are less than 25 years does not need technical clearance.
As per the government’s order, the typical age of the world fleet is on a declining trend, and the average age of the Indian tonnage is on an increasing trend over the years. The age order will help in ensuring a gradual decrease and continuous phasing out of fossil fuel ships and embracing the alternate/low carbon energy efficient ships. This order exempts passenger fleets, floating storage regasification unit drilling and production units and floating production storage and offloading units.
The decision by the government has been taken following the discussion with Indian National Shipowners Association (INSA) and comments from various shareholders, such as Indian Coastal Conference (ICCSA) and Oil and Natural Gas Corporation (ONGC).