Govt empowers PSUs to take decisions on cargo transportation

To empower government PSUs to take quick decisions for transportation of cargo in ocean, the government today gave approval to decentralise existing chartering arrangements, a move that would promote tonnage.
The decision allowing central and state PSUs to make their own arrangements of bulk cargo without having to route the requirements through the Ministry of Shipping, was taken in the Cabinet meeting, chaired by Prime Minister Narendra Modi.
"With a view to empowering various government departments/ PSUs with adequate flexibility to directly make their own shipping arrangements in respect of ocean transportation of Cargoes, Union Cabinet has given its approval to the proposal of the Ministry of Shipping for decentralising existing chartering arrangements," a source said.

The move is aimed at helping PSUs in taking quick decisions to efficiently manage their cargo supply and logistics chain operations and add to their competitiveness.
This step of enabling direct chartering arrangements will not only give flexibility to government departments/PSUs to make tailor made solutions for cargo operations in a dynamic shipping market but also promote Indian tonnage.
"This will be subject to their following the present government policy, including right of first refusal being given to Indian ships. In case of any departure from the present government policy, prior permission and no objection certificate will, however, have to be obtained from the Ministry of Shipping, with the approval of the concerned administrative Ministry/Department," the source said.

As a step towards further simplification in respect of general liner cargoes, government departments/PSUs can now finalise import contract both for Free on board (FOB) or cost & freight (C&F) basis, subject to right of first refusal being given to Indian ships, in case of FOB import with the need of prior permission from the Ministry of Shipping.