Reports on ocean trade ''alarmist'': Shipping Secretary

New Delhi, Jul 26 (UNI) The government today rubbished media reports that half of the country's ocean trade would come to a standstill from August one following its directive to major ports to ban entry of all vessels not covered by Protection and Indemnity (P&I), saying it was ''an alarmist perception of a genuine problem''.

''This is a classic instance of inadequate understanding and appreciation of this poroblem,'' Shipping Secretary A K Mohapatra told UNI in an interview.

Mr Mohapatra said the ''administrative order'' in this connection had been there for a long time. While some of the ports had already implemented it, the Mumbai Port decided to implement it from August 1. ''This has triggered the apprehension and scare. This is an old order,'' he said.

''However, this is an alarmist report, not based on facts,'' he added.

The Shipping Secretary also clarified that terms and conditions of the administrative order would be reconsidered without compromising on the basic objective of security and safety of channels and other port interests.

''Even if a vessel obtains necessary certification from the government-approved P&I Club, there would not be much problem for it to travel to an Indian port,'' he said.

Pointing out that there had been no specific laws for ensuring protection and indemnity clause for ships entering Indian ports, he said an administrative order had been there to deal with the issue.

''It is a matter of concern that not all ports in the country, including Mumbai Port, have implemented it so far,'' he said.

Asked about the number of ships which were travelling to Indian ports without P&I coverage, he said the number is big.'' According to reports, over 50 per cent of vessels calling at 12 major ports are not covered by P&I clubs.

Mr Mohapatra said it was important for foreign vessels to have P&I coverage while calling at Indian ports. ''It is important because channels and other port facilities have to be protected.

There are also problems caused by spillage of oil and hazardous and noxious substances,'' he said.

Citing the instance of the Mumbai Port, he said it was one of the busiest ports in the country. ''If a vessel sinks in the channel leading to Mumbai Port, it would considerably obstruct its operations. The cost of salvaging a sunken ship is as high as buying a new vessel,'' he said, pointing out that the Indian channels were already littered with a number of wrecks.

''It would then become the responsibility of the port concerned to clear it,'' he said.

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