GUIDELINES FOR CHARTERING IWAI OWNED VESSELS OR LEASED VESSELS

1. Preface

Inland Waterways Authority of India (IWAI) is a statutory body under the Ministry of Shipping,
Government of India (GoI). IWAI was set up in 1986 for regulation and development of Inland
Waterways for the purposes of shipping and navigation. IWAI is primarily responsible for
development, maintenance and regulation of Inland Water Transport (IWT) on the National Waterways
(NW) in the country. Presently, there are 111 NWs in the country out of which 5 were existing NWs
and 106 new waterways were declared by the GoI in April 2016.
IWT has the potential to provide a cost efficient, economic, reliable, safe and environmental friendly
form of transport. When developed for use by modern inland vessels operating on dependable rights of
way, it can reduce congestion and investment needs in rail and road infrastructure, promote greater
complementarities in the riparian states, enhance intra-regional trade and, through increased economies
of scale, significantly reduce overall logistics costs for the benefit of the entire economy and India’s
global trade competitiveness."

2. Applicability

a. The guidelines for chartering IWAI owned vessels or leased vessels by shippers, logistic service
providers, beneficiary cargo owners or any party meeting the qualification criteria shall be called
“Guidelines for chartering IWAI Owned or Leased Vessels”.

b. The Guidelines are for empanelment of interested parties to charter IWAI owned or leased vessels
on time charter basis and for selection of the successful time charterer / charterers.

c. The said guidelines shall be applicable to all Vessels owned by IWAI or Vessels leased by IWAI
that have been listed in Schedule- I.

3. Definitions

a. “Vessels” for the purpose of these guidelines, include all vessels owned by IWAI or vessels leased
by IWAI as listed in Schedule-I
b. Charter party refers to a contract in which the legal owner of the vessel agrees to place his vessel
or part of it at the disposal of third party, the charterer, for carriage of goods for which he receives
a freight per ton cargo, or to lease his vessel for a definite period of trip for which a charter is paid
c. “Legal Owner” refers to a legal person, who retains the legal title of ownership of the vessel that
appears in ship’s registration documents
d. “Charterer” means a legal person who has signed the charter party with IWAI and thus charters a
vessel or a part of capacity thereof.
e. “Party” refers to legal person, who is interested in entering into a charter agreement with IWAI
for IWAI owned or leased vessels.
f. “Shipper” refers to the legal person, who ships or puts cargo onboard the vessel to be carried to
another place during her voyage.
g. “Logistic Service Provider” ( LSP ) refers to a legal person engaged in the business of providing
transportation and other logistics services to shipper or the beneficiary cargo owner
h. “Beneficiary Cargo Owner” ( BCO ) refers to the importer of record who physically takes
possession of cargo at destination and does not act as third party in the movement of such goods
i. “Voyage" refers to a vessel’s transit from one place to another.
j. “Bunker" refers to the fuel and lubricating oils, which are stored on ship and used by the vessel
for machinery operation only.
k. “Competent Authority” a competent authority in IWAI is any person who has the legally
delegated or invested authority, capacity, or power to allocate IWAI owned or leased vessels on
nomination basis and to approve rates for pilot movements.
l. “Member” means a member of Authority, the Inland Waterways Authority of India, appointed as
per IWAI Inland Waterways Authority Act, 1985.
m. “Bareboat Charter” means an agreement between the legal owner of a ship and the bareboat
charterer, pursuant to which the owner transfers (demises) to the bareboat charterer possession of
the ship and the right to trade it as he chooses for a specified period, on terms that the bareboat
charterer will pay the bareboat charter hire, maintain and insure the ship and indemnify the owner
against liabilities incurred by the ship. The contract is effectively a "dry lease" under which the
bareboat charterer will employ the crew and be responsible for all Technical Operation and
Commercial Operation and Management expenses.
n. “Time Charter” means a contract for services made between the legal owner of the ship and the
time charterer, pursuant to which the owner does not transfer possession but promises to operate
the ship as ordered by the charterer, for a defined period in exchange for the payment of time charter
hire and for bunkers used by the ship. The owner promises to be responsible for crew, maintenance
and vessel’s insurance; and the time charterer promises to pay port costs, agency costs and the costs
of dealing with the cargo. The overall effect is that for the period of the charter the owner remains
responsible for Technical Operation, but transfers to the time charterer the Commercial
Management and Operation of the ship.

o. “Voyage Charter” means a contract between the entity who has the right to exploit the earning
capacity of the vessel (a bareboat, time or voyage charterer) and a voyage charterer, to carry a
particular cargo on a particular ship on a particular voyage for an agreed freight calculated per unit
of cargo carried and earned on loading. The voyage charterer also undertakes to pay liquidated
damages for detention (demurrage) if loading and/or discharging takes longer than the time agreed
(the lay days). The owner retains all the technical operation and commercial operation and
management responsibilities (for maintaining and insuring the vessel, employing the crew, and all
the costs of the voyage, including bunkers and port charges), and the voyage charterer is responsible
for providing the cargo, freight and demurrage. The costs and the risks of loading/unloading also
may be assigned to the voyage charterer by specifying in terms and conditions.

p. “Pilot movement” refers to cargo movement on IWAI owned or leased vessel carried out by IWAI
for the purpose of assessing the technical, commercial viability on national waterways

q. “Sublet” – means lease or charter the IWAI owned or leased vessels to a third party by the
charterer, who has entered a time charter with IWAI for IWAI owned or leased vessels
4. Scope of the guidelines
a. The guidelines are pertaining to the movement of vessels on waterways in India, in-shore traffic
corridor in the permissible coastal area as per the DG Shipping Circular and protocol routes as
permitted under the relevant rules and regulations.
b. The guidelines are applicable only for time charter of the IWAI owned or leased vessels and does
not include bareboat charter or voyage charter of IWAI owned or leased vessels.
c. In case of time charter, the scope between the owner and charterer shall be as per the table below:

Vessel owner Charterer

Crew Fuel & lubricants cost towards operation of
the vessel

Running repair and Maintenance of the Port costs & all statutory charges
vessel
Insurance of the vessel as Owners Agency cost
Cargo insurance and Charterers Protection
and Indemnity Insurance for damage or loss
to the vessel.

Survey & Certification Cost of cargo loading & unloading

d. The applicable reserve rates for time charter of IWAI owned and leased vessels are provided in
schedule II of this document.
e. The charterer entering into charter party agreement with IWAI is not allowed to sublet the
chartered vessel on time charter basis.
f. At the time of chartering of vessel, a performance security up to 20% of the total charter value,
would have to be deposited by the charterer to IWAI, for a time period comprising of the time
charter duration and an additional 60 days. The performance security can be provided either in the
form of a Demand Draft or in the form of a Bank Guarantee.

5. Procedure for Selection of Time Charterer for Vessels

a. The interested parties are first required to get themselves empaneled before they can participate in
the tender for chartering of IWAI owned or leased vessels.
b. The allocation of vessels for pilot movement will take precedence over demand for vessels from
empaneled parties if the dates are clashing between the pilot movement and the allocation of
vessels to empaneled parties.

5.1. Procedure and criteria for empanelment of interested parties

a. Request for an Expression of Interest for empanelment shall be floated by IWAI.

b. To respond to the notice, interested parties need to provide details as per the proforma provided in
Annexure A, and submit it along with the required supporting documents - in hard copy by-hand/
courier to IWAI, HQ, Noida before the closing date of empanelment.
 c. The interested parties (Proprietorship, Partnership, LLP, Private Limited, Corporation or Public)
may get themselves empaneled with IWAI by submitting their details in the prescribed format,
necessary documents and an empanelment fee as prescribed in Annexure-A
d. The empanelment for Time Charter shall be based on the financial turnover of at least INR 30
Lakhs in the preceding financial year and experience of managing/operating cargo vessels for at
least 6 months in preceding 3 years.
e. Based on the finalization of applications, empaneled parties will be informed through a written
letter and e-mail. In addition, the final list of empaneled parties may be published and updated each
time on the IWAI website.

5.2. Selection of empaneled parties for chartering of IWAI owned or leased vessels

a. As and when the vessels owned or leased by IWAI are ready in all respect to load and transport
cargo through waterways and are available for charter, the vessel/s shall be offered on time charter
to the empaneled parties for bidding.
b. The interested parties would have the right to inspect the vessels available for time charter.
c. The notice of hiring of available vessels with reserve rate and closing date shall be circulated among
the empaneled parties by IWAI’s nominated representative through e-mail, calling for rate
quotations. Submission of rate quotations shall be done online as per the enclosed format at
Annexure-B for time charter.
d. The reserve rate of all vessels shall be fixed for time charter on per day basis. The time charter
reserve rates for IWAI vessels is attached to these guidelines at schedule-II .
e. The selection of the bidder for time charter shall be based on the highest revenue earning on the
vessel, which is calculated by multiplying the per day quoted rate for the vessel with the quoted
duration (in number of days) of the time charter. The minimum and maximum duration for which
the vessel will be offered on time charter basis shall be decided by the competent authority at the
time of notice for inviting offers from interested parties. The party offering the highest revenue
shall be selected for chartering the vessel.
f. The selected party shall sign the time charter agreement as per the format provided by IWAI at the
time of selection of charterer. No dues shall be outstanding from the charterer at the time of
submission of bid
g. The Reserve rates for vessels as indicated in schedule II of these guidelines, may be reviewed by
IWAI on quarterly basis for incorporating variations in charter rates and manpower cost.
h. The time charter amount shall be payable on or before the 1st day of the month in advance. As
security, the charterer shall deposit post-dated cheques for the charter duration at the time of signing
of the contract.
i. In case of default in payment of time charter or any other dues to IWAI, IWAI may take over the
possession of the vessel and also recover the cost of transporting the vessel to Kolkata including
fuel, crew, evacuation of cargo and any incidental cost.

6. Operational considerations for Charter of IWAI Owned or Leased Vessels

a. The Director, Regional office, IWAI in whose jurisdiction the vessel is stationed shall be
responsible for handing over the vessel to the successful bidder and for signing the time charter
agreement as appropriate.
 b. In case of time charter, the crew on the vessels shall be responsible for safe operation of vessels
and log keeping of all the events and record of fuel consumption and speed. The crew on board
shall take instructions for loading of cargo, unloading of cargo and navigation from the time
charterer and provide above information to the Director, Regional office, IWAI, in whose
jurisdiction the vessel is operating or stationed. The charterer is allowed to place his supervisor on
the vessel at his own cost and liability for cargo safety, security and monitoring efficiency of vessel
including fuel consumption.

c. Navigation of the vessels to be based on the approval of the Standard Operating Procedure (SOP)
by IWAI. No vessel movement would be allowed until prior approval of the navigational plan is
obtained by the charterer. The River Notices issued by IWAI may be considered before preparing
the navigation plan.

d. The fuel and lubricants shall be supplied by the charterer. The supply of lubricants by the charterer
shall be as per the instruction of Director, IWAI or his representative/ Driver of the vessel.

e. In case the charterer withholds the vessel(s) beyond the period of charter hire as per written
agreement between the parties, then
i. With immediate effect, the monthly rate of charter hire will be 120% (one hundred and
twenty percent) of the original rate of charter hire till the time the vessel is returned to
IWAI, however, not exceeding 45 days after expiry of the contractual period of charter
hire. If the charterer still withholds the vessel(s) illegally beyond 45 days after expiry of
the contractual period of charter hire, the rate of charter hire shall be 150% (one hundred
and fifty percent) of the original rate of charter hire till the vessel is returned by the
charterer to IWAI.
ii. However, with the mutual consent of both the parties the period of charter may be extended
for a mutually agreed duration. For this purpose a request will have to be given by the
Charterer to the Authority at least 1 month prior to expiry of the original period of charter.
If the Authority agrees to such extension of the period of charter hiring of the vessel, the
hire charges will be increased by such rate and terms and conditions which will be decided
by the Authority at its sole discretion. Mere sending of a request to IWAI by the charterer
as above will not entail any right whatsoever on the charterer to get such extension and in
all such cases, the decision of IWAI shall be final and conclusive.

f. The Cargo insurance and Charterers Protection and Indemnity cover for damage or loss to vessel
is to be obtained by the charterer.

7. General

a. The above guidelines shall be reviewed on annual basis / or as deemed necessary by IWAI.

b. All the regulations that are applicable to IWT sector and future amendments of these regulations
shall be applicable to these guidelines on prospective basis as and when they are introduced.
Schedule I: Details of IWAI cargo vessels

S. Draft in Certified Year of

Name of vessel Type of vessel Dimension (m) GRT BHP Capacity (MT)
No. mtr. speed build

1 M.V Aai 2.8

Self propelled vessel 77.37 x 15 x 5 1827 1300 9.0 knots 2,000 2018

2 M.V Beki 2.8

Self propelled vessel 77.37 x 15 x 5 1830 1300 9.0 knots 2,000 2018

M.V Trishul Tug 26 x 7.75 x 3.2 1.8 159 1318 2018

2000 MT with 1000 MT
3 DB Ajay Dumb barge 59.4 x 11.5 x 3.5 2.04 718 0 7.61 knots 2018
capacity of each barge
DB Dikhu Dumb barge 59.4 x 11.5 x 3.5 2.04 718 0 2018

M.V Ramprasad
Bismillah Tug 26 x 7.75 x 3.2 1.8 159 1318 2018
2000 MT with 1000 MT
4 7.61 knots
DB Kalpana Chawla Dumb barge 59.4 x 11.5 x 3.5 2.04 718 0 capacity of each barge 2018

DB APJ Abdul Kalam Dumb barge 59.4 x 11.5 x 3.5 2.04 718 0 2018

5 M.V. Lal Bahadur Shastri General cargo 54.6 x 9.6 x 2.4 1.4 426 390 9.4 knots 300 2004

6 M.V V.V Giri Multi-purpose 54.6 x 11 x 2.11 1.4 798 470 8.36 knots 300 2012

7 M.V Visvesvaraya Oil tanker 54.6 x 10.4 x 2.6 1.4 431 390 8.32 knots 300 2006

54.75 x 9.59 x
8 M.V R.N Tagore Container 1.4 439 390 8.26 knots 300 2006
2.3

9 M.V Rajagopalachari Multi-purpose 62 x 10.6 x 2.1 1.8 774 760 9.0 knots 600 1988

10 M.V Homi Bhabha General cargo 54.6 x 9.6 x 2.4 1.4 426 390 9.49 knots 300 2004

11 M.V Zakir Hussain Multi-purpose 54.6 x 11 x 2.1 1.4 798 470 8.11 knots 300 2009
Schedule II: Time charter rates for IWAI vessels

Total time charter rate which includes

S No. Vessel name vessel & manpower cost (INR/ day)
1 MV Aai 35,672
2 MV Beki 35,672

MV Ramprasad Bismillah with DB Kalpana

3 Chawla, DB APJ Abdul Kalam 52,497
4 MV Trishul with DB Ajay, DB Dikhu 52,497
5 MV VV Giri 18,290
6 M.V. Homi Bhabha 13,730
7 MV Vishweshsariyya 15,233
8 MV Rabindra Nath Tagore 13,747
9 M.V. Rajagopalachari 16,982
10 MV LB Shastri 13,853
11 MV Zakir Hussain 18,400
The above time charter rates are exclusive of GST & taxes. GST & Taxes will be charged over and above these rates.

I. Note: The above rates are exclusive of all the statutory charges such as berthing charges, handling charges, IWAI user charges, canal and
lock gate charges etc. as may be applicable in the voyage. The above rates are exclusive of taxes that would be applicable at the time of
signing charter party agreement.
Annexure -A

NOTICE FOR EMPANELMENT OF INTERESTED PARTIES FOR CHARTERING OF IWAI

OWNED OR LEASED VESSELS ON TIME CHARTER BASIS

The Inland vessels owned or leased by IWAI are available for chartering for plying on national waterways.

IWAI proposes to empanel interested parties for chartering of IWAI owned or leased vessels as and when
the vessels are ready in all respects and are available for charter. A notice for chartering on time charter basis
will be sent by e-mail to the empaneled parties calling for rate bids on per day basis along with duration of
charter.

The List of IWAI owned or leased vessels may be referred at schedule I of these guidelines. The terms and
conditions of agreement of time charter between IWAI and charterer may be seen at IWAI website
www.iwai.nic.in.

Interested parties with annual financial turnover of at least 30 Lakhs and having experience in
operation/management of cargo vessel for a period of at least six months in preceding 3 years may enroll
themselves with IWAI by submitting their details in the prescribed format (given below) along with an
empanelment fee (non-transferable, non-refundable) of Rs. 5000/(Rupees Five Thousand only) by way of
Demand Draft in favor of “IWAI FUND”.

Nominated
representative,
IWAI
 PROFORMA FOR EMPANELMENT OF TRANSPORTERS/LOGISTICS OPERATORS FOR
CHARTERING OF IWAI VESSELS ON TIME CHARTER BASIS

1. Name of the firm :

2. Type of the firm :
(Proprietorship/ partnership/LLP /Company) Enclose Proof

3. Nature of the business :

4. Cargo Likely to be transported :
5. Experience in operation of Vessels:
(Documentary proof of past vessel operation to be provided)
6. Name of the Authorized :
Representative/ Principal Officer
7. Registered address :
8. Correspondence address :
9. Phone Nos. :
10. E-mail ID :
11. Financial Turnover :
(Audited Balance Sheet and statutory auditor certificate for turnover, to be provided)
12. Details of Empanelment Fees :

13. GST No. :

(Document to be submitted)

14. PAN No. :

(Document to be submitted)
Signature of the Principal Officer or Authorized
Signatory

Official Stamp Name ……………………………..……

Designation……………………………

N.B.-Please enclose authorization letter in case Principal Officer is not the Proprietor /Lead
Partner/Managing Director.
Annexure - B

NOTICE FOR INVITING OFFERS FROM INTERSTED PARTIES FOR CHARTERING

OF IWAI OWNED OR LEASED VESSEL ON TIME CHARTER

Inland Waterways Authority of India intends to offer its following vessel/s for transportation of
cargo through National Waterways. Description of the vessels are given below:

S No. Name of Vessel Type of Vessel Cargo carrying capacity

01. M.V. Aai 2000 MT

Cargo Vessel
02. MV Beki Cargo Vessel 2000 MT

03. MV Ramprasad Bismillah Cargo Vessel 2000 MT

04. MV Trishul Cargo Vessel 2000 MT

05. MV VV Giri Cargo Vessel 300 MT

06. M.V. Homi Bhabha Cargo Vessel 300 MT

07. MV Vishweshsariyya Cargo Vessel 300 MT

08. MV Rabindra Nath Tagore Cargo Vessel 300 MT

09. MV Rajagopalachari Cargo Vessel 600 MT

10. MV LB Shastri Cargo Vessel 300 MT

11. MV Zakir Husain Cargo Vessel 300 MT

The above vessels are available for chartering for plying on national waterways on Time Charter
basis. The evaluation of bids shall be done based on the total revenue payable on the vessel
calculated by multiplying the bid rate with duration of time charter. The minimum duration of the
time charter can be …….. days and maximum would be …….. days. The party who will be paying
maximum revenue on the vessel shall be the successful bidder.

The format of charter agreement encompassing responsibilities of IWAI and charterer may be seen
at IWAI website www.iwai.nic.in.

Interested parties may submit their bids in the prescribed format (given below) along with relevant
documents.

Nominated representative,
IWAI
 PROFORMA FOR SUBMITTING BID FOR CHARTERING OF IWAI VESSELS ON
TIME CHARTER BASIS

1. Name of the firm :

2. Nature of the business :

3. Registered address :

4. Correspondence address :

5. Name of the Authorized :

Representative/ Principal Officer

6. Phone Nos. & :

E-mail id :

7. Details of vessel to be chartered and proposed deployment of each vessel:

S No. Vessel Cargo Origins of Destinations Duration The Total

name Type & Cargo on of Cargo on of Time Charter hire
Quantity the Waterway Charter rate payable
Proposed Waterway submitted (Rate x
to be is duration
carried in days)

.
We accept the terms and conditions for charter of IWAI Vessels on Time Charter basis.

Signature of the Principal Officer/ Authorized Representative

Name ………………..………………………
Official Stamp

N.B.- Please enclose authorization letter in case Principal Officer is not the
Proprietor /Lead Partner/Managing Director.
Main Terms and Conditions for charter of IWAI Vessels on Time Charter
Responsibilities of IWAI and charterer in respect of transportation/movement of cargo by
IWAI vessels on National Waterways.

Responsibility of IWAI:

1. To place the vessel at the location ……….. for handover to the charterer.

2. To provide mechanized cargo handling facilities wherever available with IWAI for
loading/unloading of cargo on payment of charges.

3. If required, the open/covered space for storage of cargo wherever available at IWAI
terminals can be utilized on payment of charges.

4. Providing manpower, operation and maintenance, statutory survey & dry-docking

for the vessel.

In case the vessel is not able to be operated due to any unforeseen circumstances such
as Force Majeure, the charterer will have choice to return the vessel after unloading
the cargo. In such case, the time charter charges for the duration when the vessel is
delayed or held because of Force Majeure shall be deducted from the total time charter
charges.
Responsibility of the charterer:

1. Provide Fuel to the vessel or pay for the fuel if fuel is provided by IWAI. All port
charges, cargo handling costs, cargo insurance, comprehensive vessel insurance &
its premium, statutory charges and any other charges related with cargo shall be
borne by the charterer.

2. Loading/unloading of cargo and cost thereof shall be borne by the charterer.

3. Charterer will make payment of agreed amount for the month (charter rate
multiplied by 30) on monthly basis in advance. The amount is payable by way of
demand draft or RTGS in favour of “IWAI fund” along with statutory taxes, if any.

4. Charterer to ensure that no illegal/contraband cargo is loaded in the vessel and

furnish a written undertaking to this effect

5. The Time Charterer to redeliver the vessel with the same amount of fuel on board
as at the time of taking over and if any difference same shall be accounted for using
the rate of POL on the date of redelivery. A letter of handing over and taking over
shall be signed by the Director, IWAI and the Charterer.
6. The period of charter shall be reckoned from the date of handing over of the
vessel(s) to the charterer till the date of taking over of the vessel(s) by IWAI. The
duration of the charter may be extended by IWAI if the vessel has cargo on board
at the time of redelivery provided a reasonable notice was tendered by the charterer.

7. If the charterer fails to return the vessel at the expiry of time charter contract due
to Force Majeure, no time charter amount shall be payable to IWAI for the period
of Force Majeure. However, if the delay is not due to Force Majeure* or without
prior agreement, then with immediate effect, the monthly rate of charter hire will
be 120% (one hundred and twenty percent) of the original rate of charter hire till
the time the vessel is returned to IWAI, however, not exceeding 45 days after expiry
of the contractual period of charter hire. If the charterer still withholds the vessel(s)
illegally beyond 45 days after expiry of the contractual period of charter hire, the
rate of charter hire shall be 150% (one hundred and fifty percent) of the original
rate of charter hire till the vessel is returned by the charterer to IWAI. With the
mutual consent of both the parties the period of charter may be extended by a
mutually agreed duration. For this purpose a request will have to be given by the
Charterer to the Authority at least 1 month prior to expiry of the original period of
charter. If the Authority agrees to such extension of the period of charter hiring of
the vessel, the hire charges will be increased by such rate and terms and conditions
which will be decided by the Authority at its sole discretion. Mere sending of a
request to IWAI by the charterer as above will not entail any right whatsoever on
the charterer to get such extension and in all such cases, the decision of IWAI shall
be final and conclusive.

8. Cargo shall be loaded as per the registered capacity of the barges/vessels and no
overloading shall be allowed.

9. All the vessel related statutory charges such as waterway usage charges, lock gate
charges, berthing charges, etc. applicable on the vessel during the period of time
charter shall be borne by the charterer.

10. For any damage to the vessel caused due to an act or omission of the charterer,
IWAI may seek damages to that effect.
***