India’s maritime regulatory environment has tightened significantly in recent years, particularly concerning the foreign-flag vessel age limit for vessels operating in Indian waters. With the evolving Directorate General of Shipping (DGS) orders compliance framework, shipowners, charterers, and maritime operators must strictly adhere to updated age limits, licensing requirements, and operational compliance rules.

These regulations aim to enhance maritime safety, align Indian operations with international standards, and ensure fair competition between Indian-flag and foreign-flag vessels. This blog provides a fact-based overview of foreign-flag vessel operations in India, focusing on age norms, eligibility, licensing, and compliance timelines under the current DGS policy.

What Is the Foreign Flag Vessel Age Limit Under DGS 01/2026?

The Directorate General of Shipping (DGS), under the Ministry of Ports, Shipping, and Waterways, governs vessel operations in Indian territorial waters, coastal trade, and the Exclusive Economic Zone (EEZ) under the Merchant Shipping Act, 1958.

Foreign-flag vessels are regulated when they:

• Participate in coastal trade between Indian ports
• Operate in India’s EEZ or offshore energy sector
• Are chartered by Indian entities
• Require licensing under Sections 406 or 407 of the Merchant Shipping Act, 1958

Foreign vessels merely calling at Indian ports for international voyages without engaging in domestic trade are generally outside the scope of age-based licensing restrictions.

How Does the Foreign Flag Vessel Age Limit Impact Licensing in India?

Vessel age is a core parameter used by DGS to assess operational safety, structural integrity, and environmental risk. Older vessels statistically carry higher risks related to:

• Structural fatigue
• Machinery failure
• Non-compliance with evolving IMO standards

Under the DGS compliance regime aligned with 2026 requirements, age eligibility is evaluated at the time of license issuance or commencement of Indian operations.

These norms apply equally to:

• Foreign-flag vessels
• Indian Controlled Tonnage (ICT)
• Foreign vessels seeking temporary or extended operational permissions

Entry Age Criteria for Vessels Under DGS Framework

To simplify compliance evaluation under DGS 01/2026, the Directorate General of Shipping prescribes vessel-category-wise entry and exit age limits for foreign-flag vessels seeking licenses for Indian operations.

Vessel Category	Age Range	Entry Condition
Oil Tankers	Below 15 years	IACS Class
	15–20 years	IACS Class + CAP 1 (Hull) & CAP 2 (Machinery & Cargo)
	20-25 years	Not Permitted
Bulk Carriers / General Cargo (except exclusive container)	Below 15 years	IACS Class
	15–20 years	Rightship inspection or RO evaluation under DGS methodology
	20-25 years	Not Permitted
Offshore Fleet (general)	Below 15 years	IACS Class
	15–20 years	IACS Class + OVID/RO evaluation
	20-25 years	Not Permitted
Specialised Vessels (Diving, Seismic, etc.)	Below 15 years	IACS Class
	15–20 years	IACS Class + OVID/RO evaluation
	20–30 years	Not permitted
Dedicated Container Vessels & Cement Carriers	Up to 20 years	IACS Class
	20–30 years	Not permitted
Gas / Chemical Carriers	Below 20 years	IACS Class
	20–25 years	IACS Class + CAP 1 & CAP 2
	25–30 years	Not Permitted
Harbour Tugs	Up to 20 years	IACS Class
	20–25 years	Not Permitted
	25–30 years	Not Permitted
AHTs & Tugs (Long Tow)	Up to 20 years	IACS Class
	20–25 years	Not Permitted
Non-Self-Propelled Ocean-Going Cargo Barges	Up to 20 years	IACS Class
	20–25 years	Not Permitted
Other Vessels	Up to 20 years	IACS Class
	20–25 years	Not Permitted

Note: Vessel age is calculated from the date of delivery recorded in statutory safety certificates issued under applicable IMO conventions.

Vessels Typically Exempt from Age Norms

• Passenger ships
• Floating Production Storage and Offloading units (FPSOs)
• Mobile Offshore Drilling Units (MODUs)
• Vessels certified under SPS or MODU Codes

Licensing and Compliance Requirements for Foreign Flag Vessels

Foreign-flag vessels operating in India must obtain DGS licenses or exemptions, subject to compliance with:

• Prescribed age limits
• Valid classification society certification
• Statutory safety and pollution prevention certificates
• Compliance with maintenance and inspection standards, including a valid Document of Compliance (DOC) certification

Licensing is reviewed at:

• Initial application
• Renewal stage
• Change in charter or operational scope

Vessels exceeding prescribed entry age limits are not eligible for licensing, regardless of operational condition or charter demand.

Transitional Provisions and Compliance Timelines

Recognizing industry impact, DGS has introduced phased compliance measures:

• Vessels categorized as “existing vessels” were granted temporary operational allowances
• Compliance deadlines for certain vessel categories have been extended until March 31, 2029
• These extensions apply irrespective of vessel age, subject to safety compliance
• Future renewals may incorporate sustainability indexing and environmental performance metrics

Foreign-flag vessels already engaged in Indian operations at the time of policy issuance were allowed to:

• Complete existing charters, or
• Operate within specified grace periods defined by DGS orders

Impact on Foreign Shipowners and Charterers

The DGS 01/2026 compliance environment has direct implications for foreign operators:

1. Fleet Deployment Strategy

Only age-compliant vessels can be positioned for Indian contracts, requiring careful fleet planning.

2. Charter Risk Management

Charterers must confirm vessel eligibility before executing the contract to avoid a licensing rejection.

3. Operational Continuity

Non-compliance can result in:

• License denial
• Charter termination
• Restricted port or offshore operations

4. Cost and Commercial Implications

Shipowners may need to:

• Invest in newer tonnage
• Redeploy older vessels to non-Indian markets

Despite these challenges, the framework improves safety standards and regulatory clarity.

Conclusion

The DGS 01/2026 regulatory framework represents a decisive step toward modernizing maritime operations in India. By enforcing vessel age limits and uniform compliance standards for foreign-flag vessels, India ensures safer operations, environmental responsibility, and fair competition within its maritime sector.

Foreign shipowners, operators, and charterers must closely track age eligibility, licensing rules, and evolving compliance timelines to maintain uninterrupted access to the Indian waters. Proactive regulatory alignment is no longer optional; it is essential for long-term participation in India’s growing maritime and offshore markets.

Frequently Asked Questions (FAQs)