As reported, the tender process began on November 12, with the deadline for bid submissions set for December 16. Captain Manish Kumar, nautical surveyor and DDG technical director at the Directorate General of Shipping in Mumbai, is the authority overseeing the tender.
This initiative was first proposed earlier this year and is believed to have been prompted by the effects of Russian sanctions on Indian trade and shipping.
Finance Minister Nirmala Sitharaman stated in a maritime conference in 2023 that it is important to have a P&I entity of India’s ownership.
“It would reduce India’s vulnerability to international sanctions and pressures to provide strategic flexibility in shipping operations, said Nirmala Sitharaman.
Additionally, it is anticipated that the proposed Protection and Indemnity (P&I) entity, named India Club, will offer third-party maritime insurance for Indian vessels operating in coastal areas and inland waterways.
This move is expected to enhance independence for Indian businesses and the economy. The initiative is expected to benefit domestic fleet owners and reduce dependence on foreign entities for insurance coverage.
Public sector insurance companies such as New India Assurance and GIC Re are being considered as partners for the initiative, as reported by the Indian newspaper Business Standard earlier this year.