- Digital registration reduces procedural friction
- Indian-controlled tonnage faces tighter requirements
- New route supports ships headed for recycling
India has notified the Merchant Shipping (Registration of Ships) Rules, 2026, replacing the 1960 framework. The rules introduce digital registration, simplify certain registration procedures, provide a formal route for bareboat charter-cum-demise registration and establish temporary registration for vessels being recycled in India.
Digital registration offers greater flexibility
The new framework allows vessels to be registered without being physically present at an Indian port solely for registration. Applications, ownership declarations and register-book access can also be handled through digital processes.
The rules also allow surveys to be conducted outside India through appointed surveyors or foreign governments, potentially reducing operational delays for vessels operating overseas.
Bareboat chartering gets formal registration route
Foreign vessels chartered to eligible Indian entities can obtain registration under a bareboat charter-cum-demise arrangement. The vessel must fly the Indian flag during registration, while ownership remains with the primary registry. The arrangement can remain valid for up to five years, including extensions.
This provides Indian operators with an additional route to deploy foreign vessels under the Indian flag without transferring underlying ownership.
Indian-controlled tonnage faces conditions
The rules place specific conditions on Indian-controlled foreign-flag tonnage. Aggregate foreign-flag tonnage owned or controlled by eligible Indian persons cannot exceed their Indian-flag tonnage.
At least 50% of crew on such vessels must be Indian citizens holding valid Indian certificates, subject to specified exemptions. Owners must also report Indian crew, trainees and foreign-flag Indian-controlled vessels twice a year.
The first Indian-controlled tonnage vessel may initially operate under a foreign flag, but an equivalent vessel must be registered under the Indian flag within two years, failing which penalties apply.
Dedicated route for recycling vessels
The rules introduce temporary registration for vessels destined for recycling in India. Such vessels require ownership and registry documentation, recycling commitments where applicable, valid recycling and hazardous-material certificates, and an authorised Indian recycling facility. They cannot undertake commercial activities during temporary registration.
The temporary registration is valid for up to three months or until recycling begins, whichever is earlier, with one possible extension of up to three months. The vessel must proceed directly to the authorised recycling facility after arrival in India.
The new framework therefore links vessel registration more closely with fleet development, Indian-controlled tonnage, crew deployment and ship recycling. Its market impact will depend on whether the simplified procedures and new registration routes encourage greater Indian-flagged and Indian-controlled tonnage.
Leave a Reply