NEW DELHI: In a Atmanirbhar Bharat (self-reliant India) push, the Shipping Ministry could reverse the relaxation in cabotage restrictions granted two years ago, allowing foreign flag ships to carry six cargo types along the Indian coast.

The move is being pushed by the recently re-constituted National Shipping Board (NSB), the country’s top advisory body on shipping.

The Coastal Container Transporters Association (CCTA), which has representation on the NSB, has sought amendments to the notifications issued by the Directorate General of Shipping in 2018, allowing foreign flag vessels to carry coastal cargo without a license from the DG Shipping.

Mr. Rahul Modi, a Member of National Shipping Board & President of CCTA, was recently quoted as saying, “Flow of export-import containers to Indian coastal ships will provide filler cargo and improve the feasibility of ships currently carrying coastal cargo one way.”

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 cabotage law.

In 2018, following strong lobbying mainly from foreign container lines, the Shipping Ministry allowed foreign flagged ships to transport export-import 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.

A decision to overturn the cabotage relaxation can be taken at the Ministry level because the 2018 decision was in the form of an office memorandum/notification without Cabinet sanction.