India Bans Oil Tankers, Bulk Carriers Older than 25 Years

Sudarshan Varadhan
Tuesday, February 28, 2023

India has withdrawn trading licenses for oil tankers and bulk carriers that are more than 25 years old, its shipping regulator said, as the world's third-largest greenhouse gas emitter looks to cut emissions and reduce the average age of its fleet. 

The order also bans acquisition of such vessels that are more than two decades old. Under current guidelines, vessels that are less than 25 years old can be acquired without any technical clearance. 

"There is a need to modernize the Indian fleet, which requires extensive review of the requirements of the registration and operation of the ships," the Directorate General Of Shipping said in the order uploaded on its website late on Monday. 

The average age of Indian fleet has been increasing in the recent years, bucking a global declining trend. "Age norms will assist in ensuring gradual phasing out of fossil fuel ships and ushering in of alternate/low carbon energy efficient ships," the order said. 

The regulation requires oil tankers older than 15 years to improve their working condition and subjects bulk carriers to additional checks to ensure adherence to high international standards. 

Non-compliance would lead to cancellation of the vessels' trading license, according to the order. 

The new norms would also apply to foreign vessels discharging in India, the regulator said, adding that existing vessels affected by the new cap on lifetime of operating vessels shall be allowed to sail for three more years, regardless of their current age. India plans to offer cash subsidies, lower taxes and other incentives to bolster its shipbuilding industry. 

The moves include subsidies encouraging construction of new vessels, and incentives to build small vessels and promote battery-driven small vessels to cut carbon emissions

India has around 35 shipbuilding companies, including some state-owned firms. Despite lower costs of manufacturing, local tax rules deter investment in India's shipping industry. 

(Reuters - Reporting by Sudarshan Varadhan; Editing by Jacqueline Wong and Sonali Paul)

Categories: Bulk Carriers Asia Regulations Oil Tankers

Related Stories

Woodside Inks Long-Term LNG Supply Deal with China Resources

Second Hai Long Substation Heads to Project Site Offshore Taiwan

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

ADNOC Secures LNG Supply Deal with India's BPCL

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

ABS Approves Hanwha Ocean’s FPSO Design

Sunda Energy, Timor-Leste Gov Plan Accelerated Chuditch Gas Development

RINA to Conduct Pre-FEED Study for Petronas’ CCS Project in Malaysia

TotalEnergies Wraps Up Acquisition of SapuraOMV’s Gas Assets

Sunda Energy Closing in on Jack-Up Deal for Chuditch-2 Appraisal Well

Current News

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Keel Laying for Wind Flyer Trimaran Crew Boat

MODEC Gets Shell’s Gato do Mato FPSO Ops and Maintenance Job

EnerMech Names APAC Regional Chief

CIP Reaches Financial Close for Offshore Wind Farm in Taiwan

Jadestone Submits Field Development Plan for Assets Off Vietnam

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com