Latest news with #T.K.Ramachandran
Mint
13-07-2025
- Business
- Mint
India to set up its first marine insurance group amid western sanctions
New Delhi: The Centre has begun consultations to set up India's first protection and indemnity (P&I) entity—to be called India Club—that will provide third-party insurance to Indian ships operating in the country's coastal region and inland waterways, said shipping secretary T.K. Ramachandran. The plan is to get domestic companies to provide insurance cover to Indian ships, which now depend on global clubs for securing ships and cargoes, the secretary said in an interview. The need for an India-focused P&I entity has also been felt to reduce the country's vulnerability to international sanctions and pressures where insurance coverage is denied to shipping lines operating between countries facing sanctions. At present, third-party risks in the shipping sector are insured with the International Group of P&I Clubs, a 13-member group based in London that provides liability cover to over 90% of shipping lines globally. Apart from fleet owners, the government may also contribute some seed money into the new P&l entity to help it get the necessary capital to start underwriting insurance. The Union ministry of ports, shipping and waterways' (MoPSW) consultative exercise is also to form a coalition of domestic fleet owners operating in coastal and inland waterways routes and form a locally owned P&I entity. Public sector insurance companies and reinsurers would be allowed to join the insurance coalition to give the P&I entity the heft required for providing protection cover. A tender is already out inviting consultants who can help set up the entity, said an official at an insurance association. Based on consultants' recommendations and its own consultative exercise, MoPSW may finalize a proposal that would then take the Union cabinet's approval. 'We are moving forward on the plan to have a distinct Indian P&I entity. This aim is to have this entity for managing specialized insurance needs of coastal and inland waterway vessels this year itself," Ramachandran said. A P&I entity or a P&I club is a mutual insurance association that provides risk pooling information and representation for its members. Unlike a marine insurance company, which reports to its shareholders, a P&I club reports only to its members, which include ship owners and operators, charterers, freight folders and warehouse owners. These act as both insurer providers and insurance receivers for its members and provide coverage for a carrier's third-party open-ended risks. These include risks such as damage caused to cargo during carriage, war risks and risks of environmental damage such as oil spills and pollution, which traditional insurers companies are reluctant to cover. 'In India, mutual insurance is invalid in law. So, if a club kind of setup for marine insurance is being designed, the insurance law will first need to be emended. The idea of a separate P&I entity is not bad given that it is a very specialized nature of insurance that should be provided by people who understand the industry well," said Anil Devli, chief executive officer of the Indian National Shipowners' Association. 'Public sector general insurers and a few private insurers are currently providing ship hull and machinery insurance and also covering cargoes. If an Indian P&I entity is being planned, the government should provide capital and allow public sector insurance companies to pool resources and set up to this specialized entity for the domestic shipping industry," he added. 'Insurers, including GIC (General Insurance Corporation of India), have experience in forming pools for specific covers, which suggests they could potentially come together to support an Indian P&I club. Their participation would be vital in providing proper risk coverage for domestic vessels. By collaborating with insurers, India Club could leverage their expertise and resources to offer comprehensive coverage to vessel owners," said Gaurav Agarwal, head, marine, Prudent Insurance Brokers. 'This has been under discussion for long. Looking at the small vessel operators being targeted initially, it cannot be a club that is basically a 'mutual' created by shipowners. So, the entity conceived should be an insurer/company providing P&I coverage. The tender is out inviting consultants who can help set up such an entity," said R. Balasundaram, secretary general of the Insurance Brokers Association of India. The government plans to scale up India Club gradually as part of global clubs offering covers to even international shipping lines. To be sure, the local P&I entity is expected to benefit only a few small shipping lines as 90% of Indian-owned ships are operating on foreign flags of countries such as Panama, Liberia and Kazakhstan that have relaxed regulations. Also, India Club will face the challenge of providing monumental levels of covers running to billions of dollars as its cover may not be accepted by global traders who largely depend on covers offered by international clubs that provided insurance globally with quick settlement of claims.
Mint
07-07-2025
- Business
- Mint
India's mega shipbuilding plan unfolds; 5 greenfield and 3 brownfield facilities taking shape on both sides of coastline
India is working to dramatically expand its domestic shipbuilding capabilities, with plans to establish eight such clusters along its expansive coastline. While five of these facilities will be built from the ground up, the rest three will involve expansion of existing facilities. The government has finalized the locations with pre-secured land parcels and necessary clearances, Union shipping secretary T.K. Ramachandran said. The mega-initiative, a cornerstone of the nation's Atmanirbhar Bharat drive, aims to transform India into a global shipbuilding powerhouse. States have made rapid progress in developing maritime clusters, Ramachandran said in an interview. "All state governments have formed special purpose vehicles to implement the project with approved and identified land parcels and access network connecting the clusters with roads and railway infrastructure. Seaside infrastructure is being developed along with breakwater facilities," he said. Nations are increasingly looking at shipping as a strategic sector, given Chinese dominance of the sector. US president Donald Trump has called for revitalizing shipbuilding, viewing it as crucial for both national security and economic prosperity. He has signed an executive order to create a Maritime Action Plan, established a new Office of Maritime and Industrial Capacity within the National Security Council, and proposed measures like imposing fees on Chinese-built vessels entering US. The five greenfield clusters that will come up in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra will host the entire spectrum of ship manufacturing to equipment production, vendors, bunkering stations, insurance and ship leasing, said Ramachandran. These sites will house everything from ship manufacturing and equipment production to vendors, bunkering stations, insurance, and ship leasing entities. India's push is driven by a desire to significantly increase India's miniscule share of global shipbuilding, currently below 1%. The Maritime India Vision 2030 and Vision 2047 plans aim to elevate India into the top 10 and then top five shipbuilding and ship-owning countries worldwide, respectively. The target is to raise the share of Indian-built ships in India's fleet from the current 5% to 7% by 2030 and a substantial 69% by 2047. Odisha, Andhra Pradesh and Tamil Nadu have commissioned techno economic feasibility reports, and the government is exploring tie-ups with global shipbuilders for these clusters. While the secretary did not comment on the required investment for these projects, it is estimated that about ₹2 trillion would be required to develop the infrastructure over five to six years. The investment is part of the broader Maritime India Vision 2030, which anticipates a total investment of ₹3-3.5 trillion across ports, shipping, and inland waterways. In addition, three brownfield facilities will be developed: two in Gujarat (a ship repair facility in Vadinar and a shipbuilding facility in Kandla) and one shipbuilding facility near Cochin Port in Kerala. Shipping ministry officials have visited shipbuilding hubs in South Korea, Japan, and Scandinavian countries to explore partnerships and joint venture agreements. Ramachandran indicated that some tie-ups between global shipbuilders and Indian private and state-owned companies could materialize soon. "While we're seeing progress, the global market is still dominated by China, South Korea, and Japan," commented Pushpank Kaushik, CEO & head of business development (subcontinent, middle east and South East Asia) at Jassper Shipping. "To bridge that gap, what's really needed now is a clear push for foreign investment and technology transfer. If policy can make space for that, it'll not only attract global players but also strengthen our position in the international market." Mint had earlier reported about the government's plan to identify locations on both east and west coast of India as part of its ambitious global ship hub plans. The Union budget for FY26 outlined several measures to bolster domestic shipbuilding, including a ₹25,000 crore government-industry partnership Maritime Development Fund; revamping the existing Shipbuilding Financial Assistance to address cost disadvantages; and providing credit notes for shipbreaking to help purchase made-in-India ships. The budget also included large ships in the infrastructure harmonized master list, allowing their purchase on easier terms, while providing basic customs duty exemption on raw materials, components, consumables or parts for 10 more years. India's shipbuilding initiative would also address a concern of the trade about the uncertainty and variability of shipping costs impacting their competitiveness. With better availability of domestic shipping lines at affordable prices, the freight rate volatility due to shock events like covid-19, the Russia-Ukraine war, Red Sea crisis and the Iran-Israel conflict could also be checked.
The Hindu
30-06-2025
- Business
- The Hindu
ASEAN-India Cruise Dialogue 2025 aimed at enhancing cruise operations begins
In a bid to improve the cruise operations across ASEAN and Indian ports and to optimise partnerships, ASEAN-India Cruise Dialogue 2025 began on Monday. The two-day forum has 30 delegates from 10 ASEAN member states which include The Philippines, Brunei, Myanmar, Indonesia, Singapore, Thailand, Malaysia and Vietnam discussing about regulatory frameworks, connectivity challenges and best practices in cruise sector. While addressing the media, Sarbananda Sonowal, Minister for Ports, Shipping and Waterways said, 'It is the second edition of such a dialogue and the first one in the country. This is mainly to develop our collaboration and cooperation to promote cruise industry. This initiative is required so that, in this part of the world, ASEAN and India can play an important role. We want to have a major share in the participation of ocean cruise, sea cruise and river cruise.' T. K. Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways said, the idea was also to have a cruise circuit and involve all these countries in order to make it more lucrative for everyone. Sunil Paliwal, chairman of Cruise Bharat Mission and Chennai and Kamarajar Ports said, the cruise terminal in Chennai Port has been having regular vessel calls. 'After the signing of the agreement in 2022, we started having vessel calls for four months. Next September, the same company is getting one more ship, and then we hope to have one cruise vessel permanently. We are improving on our cruise terminal as well,' he added. Mr. Sonowal also laid the foundation stone for four projects at Chennai Port, including improvement of cruise terminal which would enhance passenger handling capacity, development of paved storage yard on 9.9 hectares, development of seafarers club and conservation, renovation and restoration of old hydraulic power house into a historic monument.
Mint
24-06-2025
- Business
- Mint
India on track to make Chabahar preferred port of call in Iran for trade with Central Asian nations, says shipping secy
India is pushing ahead to make Chabahar, located in the strategic southeastern corner of Iran, its main port of call in a bid to pivot away from Bandar Abbas near the Strait of Hormuz chokepoint, said ports, shipping and waterways secretary T.K. Ramachandran. The recent tension in West Asia, marked by the Iran-Israel conflict and US bombings has prompted India to fast-track its plan to develop rail and road infrastructure at Chabahar port. This would turn it into the preferred port of call for the movement of all Indian goods destined for Central Asian countries and Afghanistan and reduce dependence on Bandar Abbas. Chabahar not only provides India with an alternative access point to Central Asia and Afghanistan, it also bypasses both Pakistan and the China-Pakistan Economic Corridor (CPEC). This offers India greater regional connectivity and trade options, reducing its reliance on Pakistan and potentially strengthening its geopolitical influence in the region. 'Work on improving and expanding facilities at Chabahar Port is ongoing and the port has also been consistently getting increased container and cargo at its terminal. Very soon, the port will get connected to main rail and road networks in Iran allowing it to become the prime port for movement of shipments from India to Iran, Afghanistan and other Central Asian Republics," Ramachandran told Mint. He said the port did not face any threat during Israel-Iran conflict and functioned normally with all construction work, including expansion and connectivity projects, continuing uninterrupted. 'The objective for Chabahar Port is to make it the main port of call for Indian shipments bound for Central Asian republics and we are moving in that direction," Ramachandran said. Bandar Abbas key port now At present, Indian shipments to Iran and Central Asian countries mainly use Bandar Abbas, Iran's largest port. But rising tensions in West Asia and the Persian Gulf region pose threat to this port that is close to Strait of Hormuz, a famous chokepoint. In recent days the threat of Iran closing off the Strait of Hormuz has loomed large. A closure would have made shipments in and out of Persian Gulf difficult and spiked oil prices. Chabahar, is away from the Strait of Hormuz and has a vast opening towards the Arabian Sea. This makes the port not only strategically important for India but also one that supports uninterrupted shipments even during times of tension in West Asia. India's focus on projects in Iran also assumes importance in wake of worsening India-Pakistan ties following the April terrorist attack on tourists in Pahalgam. 'Indian and Iranian authorities are working to provide rail connectivity to the port and the infrastructure should be available soon," Ramachandran said. As per the plan, India along with Iran would fast-track the development of a new rail route between the Chabahar port and Zahedan city. This could turn the port into the gateway to the International North–South Transport Corridor (INSTC), providing the main trade channel for Central Asian and Eurasian countries located on the eastern side of the Caspian sea and Afghanistan. The rail line is expected to be ready by 2026-end or early 2027. Also read | India to fast-track Chabahar port works The rush for rail connectivity is because port operations have now become viable with a pick-up in movement of both container and dry bulk cargo as Chabahar becomes the main trading channel for India. Chabahar, as per the ministry of ports, shipping and waterways (MoPSW), handled a substantial volume of cargo in FY25, reaching up to 80,000 TEUs and 3 million tonnes of bulk cargo. In comparison, it had managed just over 64,000 TEUs in FY24 and only around 9,000 TEUs the year before that. The port handled 2.12mt of bulk cargo in FY24 and 2.08 mt in FY23. A TEU is a measure of volume in units of twenty-foot long containers. The port has a current capacity of 100,000 TEUs which will rise to 500,000 TEUs over the next few years The bulk cargo capacity of 8mt will be more than doubled soon. Work on the 700-km long Chabahar-Zahedan railway line has moved very slowly even though an MoU was signed between Indian Railways' IRCON and Iranian Railways' Construction and Development of Transportation Infrastructures Company (CDTIC) back in 2016. Now, it is getting implemented as Chabahar is emerging as next big commercial port in Iran after Bandar Abbas. Taking shape Things began to take shape when India and Iran in May last year signed a long-term contract for the development of Chabahar port after years of protracted negotiations. IPGL (India Ports Global Ltd) has taken over operations of Shahid Beheshti terminals at Chabahar. The facility. which comprises a container terminal and a multi-cargo berth, is operational and providing services for bulk and container cargo. A number of schemes are being offered by IPGL to promote the use of Chabahar port including, discounts, longer free storage times for cargo etc. The port has a deep draft that can handle larger vessels. Besides, ships calling at Chabahar avoid traffic congestion and waiting time at anchorage, being outside the Strait of Hormuz. The road to Zahedan (Iran) and onwards to Zaranj (Afghanistan) also provides seamless connectivity for movement of humanitarian aid from India to Afghanistan through Chabahar port. The Port handles a diverse range of products such as automobile spare parts, agricultural products, iron ore, clinkers etc. and efforts are on to increase the product basket handled at the port. Also read | After Chabahar, India looks to build port facilities in Bangladesh and Sri Lanka The port's integration with a special free zone is another positive, while Indian incentives, such as concessions on vessel and cargo charges, bolster trade flows through Chabahar. In 2003, India agreed to help Iran develop the port as well as accompanying infrastructure links during then President Mohammad Khatami's visit to India. However, matters progressed slowly thereafter amid western sanctions. In 2013, India committed to providing $100 million for the development of Chabahar. An MoU) was signed in May 2015. Thereafter things appeared to be moving forward during the visit of Prime Minister Narendra Modi to Iran in 2016. But Indian plans to help develop an international trade corridor, which included Chabahar as a central transit point, stalled again due to the reimposition of western sanctions against Iran for its nuclear programme. Enhancing regional connectivity This present agreement aims to enhance regional connectivity and facilitate trade, particularly between India, Iran and Afghanistan. The India Ports Global Chabahar Free Zone (IPGCFZ), a subsidiary of IPGL, facilitated the first consignment of exports from Afghanistan to India in 2019. The operations continued through short-term contracts while negotiations on a long-term agreement picked pace with the visit of MoPSW minister Sarbananda Sonowal to Chabahar in August, 2022. Also read | India, Iran may restart rail connectivity project between Chabahar and Zahedan Negotiations on the long-term contract were held up over disagreements on arbitration clauses. Mint had earlier reported that the two sides have reached an accommodation which will allow arbitration under rules framed by the UN Commission on International Trade Law. India is looking to strengthen its presence in key infrastructure along the route passing through the Persian Gulf region. The Adani Group is already operating the Haifa port in Israel and more port deals are expected in the region by Indian entities that will strengthen the country's presence on this strategic route that is the main gateway for shipments moving from the India to Europe.
India Today
10-05-2025
- Business
- India Today
Kolkata port raises security level amid India-Pak tensions, cancels staff leave
In light of the prevailing national security situation, Syama Prasad Mookerjee Port (SMP), Kolkata has escalated its security measures following a high-level virtual security review meeting chaired by Shri T. K. Ramachandran, IAS, Secretary, Ministry of Ports, Shipping and Waterways (MoPS&W), Government of meeting was attended by senior officials including Shri Rathendra Raman, Chairman, SMP Kolkata, Shri Samrat Rahi, Deputy Chairman, SMP Kolkata, Ruchi Anand, Senior Commandant, CISF and Heads of Departments. After detailed discussions, Secretary (Shipping) guided the port authorities to implement stringent security protocols to protect critical infrastructure and ensure uninterrupted port on these robust security initiatives, Chairman Rathendra Raman said, 'At Syama Prasad Mookerjee Port, Kolkata, the safety and security of our men, property & vessels is of utmost priority. Given the current national security situation, it is our collective responsibility to stay vigilant and prepared. We have elevated our security protocols in line with the directives of the Ministry of Ports, Shipping and Waterways and the DG Shipping to ensure that our port remains a secure gateway for maritime trade.' Acting on the directive, SMP Kolkata has raised its security level to Level 2, as mandated by the Directorate General of Shipping. All personnel have been instructed to maintain high vigilance. Authorities have asked employees to report any suspicious activity in the port premises or waterways to the security personnel without maintain full operational readiness, the port has cancelled all employee leave—including that of contractual staff—from May 10 to May 14, 2025. Additionally, employees must remain at headquarters, even on their scheduled weekly off days. Pilots and dock pilots are also on high alert, ready to execute emergency evacuations from both Kolkata Dock System (KDS) and Haldia Dock Complex (HDC) if Kolkata is also stepping up its cybersecurity infrastructure. The Chief Information Security Officer (CISO) has been tasked with implementing strict protocols to prevent cyber threats. A detailed circular on this front will be issued will conduct regular security drills involving all stakeholders to ensure preparedness for any contingency. The port will suspend operations during any planned or unplanned blackout to mitigate risks tighten access control, CISF and PSO personnel have been directed to allow entry only to individuals with valid Dock Entry Permits or official Photo ID cards. IN THIS STORY#Kolkata#Operation Sindoor
