From UPSC perspective, the following things are important :
Prelims level : GIMAC
Mains level : International arbitration and India
The Gujarat Maritime University signed a Memorandum of Understanding (MoU) with the International Financial Services Centres Authority in GIFT City to promote the Gujarat International Maritime Arbitration Centre (GIMAC).
What is GIMAC?
- The GIMAC will be part of a maritime cluster that the Gujarat Maritime Board (GMB) is setting up in GIFT City at Gandhinagar.
- The Maritime Board has rented about 10,000 square feet at GIFT House which is part of the Special Economic Zone (SEZ) area with clearance from the development commissioner.
- This will be the first centre of its kind in the country that will manage arbitration and mediation proceedings with disputes related to the maritime and shipping sector.
- The centre is expected to be ready by the end of August.
Why is such a centre needed?
- It is required because, for instance, the ship owners belong to a different country and the person leasing the ship is from another country.
- Any dispute arising between them can be resolved within this centre.
- There are over 35 arbitration centres in India. However, none of them exclusively deals with the maritime sector.
- The arbitration involving Indian players is now heard at the Singapore Arbitration Centre.
- The idea is to create a world-class arbitration centre focused on maritime and shipping disputes that can help resolve commercial and financial conflicts between entities having operations in India.
- Globally, London is the preferred centre for arbitration for the maritime and shipping sector.
What is the current status of the project?
- The process of recruiting staff for the arbitration centre is currently underway.
- A 10-member advisory board for GIMAC, consisting of international experts and professionals, has been created, which will help in the framing of rules for the arbitration centre and in empanelling arbitrators.