Realignment of HRA to help save $250 million, says Shipping secretary

MUMBAI: Union shipping secretary Rajive Kumar today said that shifting of the high risk area (HRA) away from the country's west coast can help save up to $250 million in insurance premium for the shipping sector.

"Shipping companies were paying an additional $250 million on account of HRA premium to insurance companies," he told reporters at the Mumbai Port Trust.

It will also curb the confrontations between local fishermen and foreign vessels, like the Italian marines shooting Kerala fishermen on fear that they were pirates, Kumar said, adding that shifting of HRA will curb "the fear psychosis".

In a boost to the Indian's maritime security interests, the country's west coast has been excluded from piracy High Risk Area (HRA) by a top body of the European Union after a revision of the limits.

The decision, taken on Thursday by the European Union Chair of the Contact Group of Piracy off the Coast of Somalia (CGPCS), will come into effect from December 1.

Kumar attributed the development to relentless efforts by officials of Shipping Ministry and the Directorate General of Shipping.

Consequent to the spread of piracy to the East Arabian Sea, the international shipping industry extended the eastern limit of piracy HRA in June 2010 to 78oE longitude, thereby including the west coast of India within the HRA.

The extension of the eastern limit of HRA from 65oE to 78oE led to security concerns on account of the presence of private security personnel onboard merchant vessels transiting the piracy HRA and the presence of floating armouries off the Indian coast.