The move, aimed at promoting coastal shipping and fulfilling a Budget
announcement by Finance Minister Nirmala Sitharaman, will roil local fleet
owners, who have always opposed easing cabotage restrictions.
The Indian
National Shipowners Association (INSA), a lobby group for local fleet owners,
will discuss the government proposal at a meeting later this month to chalk out
a strategy.
Only Indian registered ships are allowed to ply on local routes for
carrying cargo, according to India’s cabotage law. Foreign ships can operate
along the coast only when Indian ships are not available after taking a license
from the DG Shipping, according to the decades-old law designed to protect
domestic ship owners.
In 2018, following strong lobbying mainly from foreign container lines,
the Ministry of Ports, Shipping, and waterways allowed foreign flagged ships to
transport export-import (EXIM) laden containers meant for transhipment, empty
containers meant for re-positioning, agriculture, horticulture, fisheries,
fertiliser and animal husbandry commodities on domestic routes without a
license from the DG Shipping.