The Indian maritime industry is booming and with addition of more ships and seafarers the risk of accidents increases too. To tackle this, the directorate general of shipping has issued a draft merchant shipping notes that state the guidelines and criteria for the empanelment and retention of salvage firms.
These guidelines decide how the salvors will be approved and retained, the new set of rules aims to build a faster, stronger and more reliable maritime safety systems for both the vessels and the workers.
In today’s blog we will learn about
Table of Contents
BASIS AND OBJECTIVES OF THE NEW DRAFT
BASIS
The new drafted framework has the statutory basis of Merchant Shipping Act, 2025 (Act 24 of 2025) . Under Part XII, Chapter II, Section 255, the central government has the right to prescribe and implement criterias on the salvage firms. With this the government will hold the power on framing of the guidelines by which salvors can be empaneled and retained.
OBJECTIVES
In the official draft DG shipping states their clear motive of building a “National Salvage Ecosystem”. What they initially mean by this is that they want to build a strong, structured system that responds, solves and prevents detrimental emergencies at the vessels.
Here’s a clear breakdown of their vision for the said “Ecosystem”
- Their primary objective is to build a system that holds the capacity of handling emergencies with quick responses and provide services like towing, firefighting, salvage operations, and oil spill response.
- This official framework by DGS aims to mandate the availability of resources and finances for the salvors to be able to respond within the first 12 hours of initial reports of any accidents at sea.
- Guidelines from this new draft not only apply to local vessels but also to any vessels that are actively transiting through Indian waters or calling at Indian ports. These vessels are required to take measures in advance to be able to fulfill these regulations.
They can either
- Establish in-house firefighting, oil spill response capacity and deploy high bollard pull tugs at strategic locations OR
- Co-ordinate with local salvage firms to ensure both regular safety systems and to make arrangements for emergency response assets which will be deployed strategically when needed.
CRITERIA FOR EMPANAELMENT AND RETENTION FOR SALVAGE FIRMS
For salvage firms to be qualified for empanelment and have the further opportunities to be retained in the future they will have to meet certain criterias. The criterias are as follows:
Have to be a registered entity
- As either an Indian company or a joint venture with an Indian partner
- Must have proof of solid finances, a minimum paid-up capital at the least
Have to have one centralized headquarters with warehouses and operational basis
- If you are a salvage firm looking to be empaneled within the coastal regions you have to at least have one main headquarters with a warehouse in India.
- With 2 operational bases within 6 months of the initial approval – One on the east coast and one on the west.
- Must be equipped and ready to expand further to cover more locations around India within 2 years.
While salvage firms get their approval through the empanelment under the merchant shipping act. Other businesses, mainly RPSL companies need to go through a much tedious process to obtain the licenses, but there’s nothing to worry about. legalBabu offers an RPSL Annual Compliance Service.
The next criteria is to possess assets and expert services such as:
- Tugboats, salvage gear, oil spill kits, diving/underwater repair equipment, etc.
- Employed experienced professionals (like salvage masters, naval architects, divers, oil spill specialists) etc.
Demonstrate operational capability with prior evidence
- Firms are required to show evidence of successful salvage operations within the previous 5 years. Operations such as wreck removal/ refloating/ Oil recovery/ underwater repairs etc.
- Preference is given to firms that already worked on the Indian coast.
- Must also be a member of the International Salvage Union (ISU) or similar recognized body in India.
Have tie-ups with OSRO and India’s emergency system.
- As the heading stated, salvage firms must be a partner of the Oil Spill Response Organisation (OSRO).
- Must have agreements with ship/tug operators so that in case of an emergency, they can mobilize within 12 hours.
STAKEHOLDER CONSULTATION
The Draft Criteria for Empanelment and Retention of Salvors are annexed to this Notice as Annexure–I.
All stakeholders, Indian and foreign, are invited to review the draft and provide their comments and suggestions within three weeks of the issuance of this Notice. A separate implementation notice will be issued after due consideration of the feedback received.
- Comments to be submitted latest by 10th October 2025
- The salvage firms (both Indian and foreign) interested to establish salvage hubs in India are invited to submit their interest to the DGS through following email ids.
- For feedback, comments and any further clarification or support regarding this directive, entities may contact these officials at DGS:
- Capt. Harinder Singh, Nautical Surveyor and DDG(Tech)
- Adv. Manneck Vesuna, Legal Assistant
- Shri Madhav Damodar Patil, Assistant
- You can find their email information on the official DGS page.
Along with this,mastering the Latest DG Shipping Circulars and E-Governance will be Crucial for Your Maritime Career and to get any further guidence and resources you can visit our offical site
DRAFT CHECK LIST FOR EVALUATION OF APPLICATIONS
Here’s a detailed and systematic checklist of criterias a salvage firm has to fulfil in order to get approval for the empanelment and retention of their entity under part XII of the merchant shipping act 2025.
| Sr. No | Criteria | Requirements | Remarks |
|---|---|---|---|
| 1 | Registration with a regulatory body | Mandatory | Copy of certificate of incorporation to be submitted |
| 2 | Type of Company (Indian Company or Joint Venture with an Indian Entity by foreign salvage firms) | Mandatory | In case of Joint Venture, details of all entities to be submitted |
| 3 | Total paid-up capital of the (Indian) entity | 10 crores (Mandatory) | Evidence required to be submitted with the application |
| 4 | Financial Statements indicating positive net worth and turnover | Last three years financial statements and 25 Crores turnover (Mandatory) | Evidence required to be submitted with the application |
| 5 | Ability to give Bank Guarantee/ LOU (Letter of Undertaking)/ LOI (Letter of Intent) | Mandatory | Specimen to be provided with the application |
| 6 | Operational set-up/ Stand-by locations around Indian Coast | Minimum Operational set-up of 1 centralized Headquarters with warehouse / Stand-by locations at 1 location on East and West Coast of India each within 6 months (Assurance of setting up a minimum 6 locations around the Indian Coast within 2 years) | Evidence to be submitted for the existing facility. Detailed setup plan to be submitted along with the application |
| 7 | Assets/Equipment’s available on standby | Mandatory | Evidence of assets/ salvage equipment’s available in India to be submitted with the application |
| 8 | Manpower Requirements (Salvage Master, Naval Architect, Chemist, Firefighting Expert and other salvage personnel) | Mandatory | Details, qualifications and experience of Salvage Master, Naval Architect, Chemist, Firefighting Expert and other salvage personnel to be provided |
| 9 | Experience of successful completion of salvage operations in last 05 years | Successful completion of minimum 5 salvage operations (Wreck Removal/ Refloating/ Oil Recovery/ Underwater repairs) (Mandatory) | Evidence of successful completion of salvage operation to be submitted |
| 10 | Experience of conducting salvage operations around Indian Coast in the last 10 years | Successful completion of minimum 2 salvage operations as primary Salvor and additional 02 operations as partner (for Indian salvors, in case of JV) (Preferred) | Evidence of successful completion of salvage operation to be submitted |
| 11 | Details of any unsuccessful salvage operations | As applicable | Details required to be submitted with the application |
| 12 | A Member of International Salvage Union or equivalent domestic accreditation | Mandatory | Evidence required to be submitted with the application |
| 13 | Tie up with OSRO (Oil Spill Response Organisation) in India with the list of equipment’s and its locations | Mandatory | Evidence of tie up with OSRO required to be submitted with the application |
| 14 | Tie up/MOU with Ship operators/owners/managers for Emergency deployment of Tugs | Agreement should state that the tugs should be mobilized within 24 hours of reporting (Mandatory) | Evidence of tie up/MOU with Ship/Tugs/operators/owners/managers required to be submitted with the application |
| 15 | 24 X 7 availability of Point of Contact for salvage | Mandatory | Declaration to be provided with the details of Point of Contact |
| 16 | Affidavit to comply with Indian laws | Mandatory | In compliance with the Merchant Shipping Act, 2025, Indian Ports Act, 2025 & other extant applicable Indian Laws |
FINAL WORDS
With the global and fast paced expansion of the nation’s shipping industry it is more crucial than ever to make sure the industry has the capacity to prevent, solve and attend to as many emergencies as possible. And salvage firms will be and are at the forefront of this process, so it is important that the directorate general of shipping is filtering through the number of entities and is only empaneling and retaining the top best salvors into the picture.
This new update adds to the many-many steps DG shipping has taken towards the enrichment and welfare of Seafarers. Along with various conventions and safety medical precautions for the workers at sea.
FAQs
- When was this draft issued?
This draft was issued 19th August 2025 and the statutory basis of this draft, which is merchant shipping act, 2025 was issued on 18th August 2025.
- Who does this affect/ who is this for?
This for all the salvors/salvage firms that are either trying to empanel or retain their firms under Part XII of the merchant shipping act.
- What is in Part XII of the merchant shipping act, 2025?
Part XII of the Merchant Shipping Act, 2025 deals with Wreck and Salvage. It has two chapters:
- Chapter 1 – Wreck: Lays down rules for reporting, marking, removing, and disposing of wrecks in Indian waters. It defines what counts as a hazard, fixes the shipowner’s liability for costs, requires compulsory insurance, and empowers the government to act quickly to protect safety and the marine environment.
- Chapter 2 – Salvage: Covers salvage operations (rescuing ships, cargo, or lives at sea). It defines the rights and duties of salvors, shipowners, and the government, rules for salvage rewards, dispute resolution, and the official retention/empanelment of salvors in India.
- Where can I find the official document of this new act?
You can find it directly on the official DG shipping site. But here’s the link to the direct PDF 202508251212088725453MerchantShippingAct,205.pdf
- What kind of experience is required for my firm to officially get empaneled?
At least five successful salvage operations (like wreck removal or oil recovery) in the past 5 years, with preference for operations on the Indian coast.
- Are tie-ups with organizations required?
Yes. Salvors must have agreements with:
– Oil Spill Response Organisations (OSROs) in India.
– Ship/tug operators for emergency deployment of tugs within 24 hours.
7. Who is allowed to send feedback about the new draft?
Indian and foreign salvage firms, shipping companies, and port authorities are allowed to send feedback to the official emails given, feedback must be submitted by 10th oct 2025.