India’s fleet owners have secured a three-year extension from the Directorate General of Shipping (DGS) to comply with age norms for existing vessels, pushing the deadline from February 2026 to March 31, 2029. An additional extension of up to two years—until March 31, 2031—may be considered, subject to a review based on the proposed ‘Sustainability Indexing of Ships’, the maritime regulator said.
In an order issued on Wednesday, Director General of Shipping Shyam Jagannathan said that all “existing vessels”—defined as ships registered under the Indian flag on or before the date of issuance of the order—will be allowed to operate until March 31, 2029, irrespective of their age. Vessels acquired or to be acquired under the ‘Indian Controlled Tonnage’ scheme will be treated at par with Indian-flag vessels.
The Sustainability Indexing framework, aimed at aligning fleet operations with environmental and efficiency benchmarks, will be issued after wider stakeholder consultations, Jagannathan added.
The extension revises the timelines set under the age norms notified in February 2023, which had granted shipowners three years—until February 2026—to comply. The norms were introduced to promote the acquisition of quality tonnage and accelerate the modernisation of the Indian fleet.
Applicability to Foreign-Flag Vessels
To ensure a level playing field, the age norms also apply to foreign-flag vessels that require licences under Sections 406 and 407 of the Merchant Shipping Act, 1958. This includes vessels granted exemptions and operating in India’s coastal trade—carrying cargo between Indian ports—or within the Exclusive Economic Zone, whether chartered by Indian entities or otherwise.
For such vessels, the maximum permissible age will be determined as of the date of commencement of service or cargo carriage. Foreign-flag ships exceeding the prescribed entry age will not be granted permits and must meet qualitative parameters at the time of licence application.
Entry and Exit Age Limits by Vessel Type
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Second-hand oil tankers, bulk carriers, general cargo vessels: Entry at 20 years; operation permitted up to 25 years.
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Offshore fleet: Entry at 20 years; operation up to 25 years, except DP2 vessels, which may operate up to 30 years.
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Exclusive container and cement carriers: Entry at 20 years; exit at 30 years.
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Gas and chemical carriers: Entry at 25 years; exit at 30 years.
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Harbour tugs: Entry at 20 years; exit at 30 years.
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Anchor handling tugs, long-tow tugs, non-self-propelled ocean-going barges: Entry at 20 years; exit at 25 years.
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Specialised vessels (including diving support, geotechnical, seismic survey, well stimulation and accommodation barges): Entry at 20 years; exit at 30 years.
Passenger vessels, FSRUs, FPSOs, highly specialised vessels (such as heavy-lift installation barges, crane barges, pipe and cable-laying vessels, research vessels and floating docks), dredgers, DP2 diving support and well stimulation vessels, and drilling/production units certified under MODU/SPS Codes have been excluded from the age norms.
Push for Modernisation and Green Transition
Jagannathan noted that while the average age of the global fleet is declining, the average age of Indian tonnage is rising, underscoring the need for urgent modernisation. He added that the age norms complement the International Maritime Organization’s strategy to reduce greenhouse gas emissions by facilitating a gradual phase-out of fossil-fuel ships and encouraging the adoption of alternative and low-carbon energy-efficient vessels.
Boost to Shipping and Shipbuilding
The norms align with the government’s ₹69,725 crore package approved last year to bolster the shipping and shipbuilding sectors. The Ministry of Ports, Shipping and Waterways believes the measures will stimulate the growth of quality Indian tonnage by establishing clear entry age criteria for Indian-flag registrations.
A government official said Indian-flag vessels would continue to enjoy cabotage benefits along the coast until the prescribed exit age, unlike foreign-flag vessels. “No foreign vessel can compete in the same age category, which is expected to increase demand for flagging vessels under the Indian flag,” the official said. (Source: ET Infra)
