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India has withdrawn trading licenses for oil tankers and bulk carriers that are more than 25 years old, its shipping regulator said, as the world's third-largest greenhouse gas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

Yinson Production Concludes Minority Stake Sale in FPSO Anna Nery

Sunda Energy Pushes Back Chuditch-2 Appraisal Well Drilling Date

MCDermott Gets Pipelines and Cables Job at Qatar's Giant Gas Field

Southeast Asia Expected to Boost Coal Trade

TotalEnergies Extends LNG Supply Agreement with CNOOC Until 2034

DOF Subsea Grows Its APAC Backlog

A Look Inside the East Asia & Pacific Offshore Wind Markets

Valeura Produces First Oil from Nong Yao Extension Off Thailand

Equinor Picks SHI as Preferred Supplier for Korean 750 MW Floating Wind Project

China’s CNOOC Hits ‘High Yield’ Well in in Beibu Gulf

Current News

Valeura Energy Consolidates Thai Oil and Gas Assets

TotalEnergies Inks 15-Year LNG Supply Deal with China’s Sinopec

Shelf Drilling Secures $200M Contract Extensions with Chevron for Thailand Ops

Floating Wind and the Taming of Subsea Spaghetti

Impending Shortage of Jackups within Ageing Asia Pacific Fleet

Equinor Tries Again for a Japan Offshore Wind Lease

Yinson Production Concludes Minority Stake Sale in FPSO Anna Nery

Sunda Energy Pushes Back Chuditch-2 Appraisal Well Drilling Date

CNOOC Starts Production at Another Oil Field in South China Sea

ABS Takes Charge of Digital Twin Project for Petrobras’ FPSOs

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