![]() On the other hand, foreign-flagged ships can transport cargo within the country if they obtain a licence from the Directorate General of Shipping (DGS) in the Union government. Under Section 407 of the Act, only ships registered (or “flagged,” in shipping parlance) in India, which follow Indian laws and pay taxes to the Indian government are permitted to engage in cabotage trades. Shipping goods within India’s domestic jurisdiction, that is, from one Indian port to another, is known as “cabotage.” It is governed in India by the Merchant Shipping Act (MSA) of 1958. ![]() Significantly, the decision is likely to result in major gains for companies in the Adani group which own and operate several private ports in India, which import coal and agricultural products and which have significant interests up and down the logistics value-chain. ![]() This is the latest move in a policy tussle going for many years and appears to tilt the balance in the shipping industry and the ports sector in the country hugely in favour of major multinational shipping lines and private port operators to the detriment of Indian shipping companies and government-run ports. On May 21, the Ministry of Shipping issued a notification that relaxed restrictions on the movement of foreign ships engaged in transporting containers laden with goods for export or import as well as empty containers between and among Indian ports along the country’s coastline.
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