Published 2006-09-27
Keywords
- cabotage,
- shipping register,
- Merchant Shipping Act 1958 (India),
- ship licensing,
- foreign investment
- Foreign Exchange Management Act 1999 (India),
- foreign flag ship,
- foreign currency loan,
- security,
- demise charterparty,
- acquisitions,
- tonnage tax ...More
Abstract
This paper contains the slides for Thacker's presentation on cabotage. Thacker observes that, under the current shipping registration system in India, no foreign company can register a vessel in India under its Merchant Shipping Act 1958, and that foreign flag vessels may only operate in India under a license from the Director General of Shipping, which is temporary in nature and is subject to both price reasonableness of charter hire and that there is no Indian Flag vessel available that meets similar specifications. Therefore, the best way for a foreign company to enter the Indian shipping market is by owning and controlling an Indian entity. Thacker explains how this process may take place.