Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

GIMAC: India’s first maritime arbitration centre

Note4Students

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.
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