Lok Sabha Question No. 828 (UNSTARRED), answered on 2015-12-03
Subject: International Maritime Organisation
Ministry: SHIPPING
Asked by: KUNWAR HARIBANSH SINGH, SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR, NARANBHAI KACHHADIA, SUNIL BALIRAM GAIKWAD

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO. 828 TO BE ANSWERED ON 3 RD  DECEMBER, 2015 INTERNATIONAL MARITIME ORGANISATION

828.     SHRI KUNWAR HARIBANSH SINGH: SHRI SUDHEER GUPTA: SHRI GAJANAN KIRTIKAR: SHRI NARANBHAI KACHHADIYA: DR. SUNIL BALIRAM GAIKWAD:

Will the Minister of SHIPPING be pleased to state:

## पोत प�रवहन मंत्

- (a) whether the International Maritime Organization which regulates global shipping is expected to remove a major portion of Indian ocean from the list of piracy prone high risk area;
- (b) if so, the details thereof and reasons therefor;
- (c) the likely benefits of the said move to the country; and,
- (d) the other steps taken/being taken by the Government for the benefit of Indian ship owners?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)

(a)&(b):As  a  result  of  increase  in  piracy  related  incidents,  the  shipping  industry  body  known  as  the Round  Table,  which  is  headquartered  at  London,  extended  the  High  Risk  Area  (HRA)  geographical coordinate in the Indian Ocean from 65 degrees East longitude to 78 degrees East longitude in 2011. The extended HRA came almost near the Indian coastline upto as close as about 35 nautical miles from the baseline. Due to this extended HRA, the following impacts were seen: -

- (i) Additional War Risk Premium (AWRP) was imposed on vessels carrying Indian EXIM cargo by insurance  providers  and  this  extra  AWRP  was  added  to  the  freight  cost,  which  was  a  financial burden for the Indian EXIM trade.
- (ii)  International maritime traffic movement started 'hugging' the Indian coastline leading to maritime congestion jeopardizing coastal maritime safety.

With improved patrolling and escorting by Indian Navy and Coast Guard, the conditions in the High Risk Area in the Arabian Sea improved substantially. Since the year 2011, India has consistently taken up, in several global fora, such as the International Maritime Organization and the Contact Group on Piracy  off  the  Coast  of  Somalia  (CGPCS),  the  issue  of  the  restoration  of  the  said  HRA  geographical coordinates  to  65  degrees  East  longitude.  In  view  of  India's  efforts,  international  shipping  industry bodies  have now agreed to push back the HRA from 78 degrees East longitude to the 65 degrees East longitude, acceding to India's request.

(c) It has been informed by the Indian National Shipowners' Association (INSA) that the redrawal of HRA will result in substantial savings for Indian EXIM trade on account of reduced insurance premium and consequently reduced freight costs. Another major positive fallout will be regarding improved safety of fishermen and fishing boats.

- (d) The  other  steps  taken  by  the  Government  for  the  benefit  of  Indian  ship  owners  include simplification of ship licensing procedure; permission to acquire and flag ships abroad; parity in taxation of  seafarers  employed  on  Indian  flag  vessels  with  those  employed  on  foreign  ships;  exemption  of Customs and Central Excise duties on bunker fuels consumed by Indian flag ships carrying containers along the coast.

****