The Ministry of Ports, Shipping and Waterways (MoPSW) on July 07, 2026, issued the Merchant Shipping (International Fund for Compensation for Oil Pollution Damage) Rules, 2026.
The rules lay down key definitions, procedural requirements, and reporting obligations related to contributions towards the International Oil Pollution Compensation Fund under the Merchant Shipping Act, 2025.
Firstly, the rules define important terms such as “Act,” “Fund Convention,” “form,” and “tonnage,” with any undefined terms deriving their meaning from the Act. The concept of “associated person” is expanded to include subsidiaries, holding companies, entities under common control, and certain limited liability partnerships where the contributor has significant control, aligning with definitions under the Companies Act, 2013.
Secondly, persons liable to contribute to the Fund are required to submit specified information to the Director-General in the prescribed form. If such information is not furnished, the Director-General may issue a notice, and the concerned person must comply within two weeks or within an extended period if permitted. Failure to comply or providing false information attracts penalties under the Act.
Lastly, the Director-General is responsible for forwarding the collected information to the Fund. The rules also clarify that the unit of account for compensation is the Special Drawing Right (SDR) as defined by the International Monetary Fund, and its value is to be converted into Indian rupees based on the Reserve Bank of India’s official rate on the relevant date.
These rules shall come into force on July 07, 2026.
[Notification No. G.S.R. 583(E)]
