India Develops Insurance Program to Mitigate Effects of Red Sea Crisis

India Government Prepares Insurance Scheme for Exporters Amid Red Sea Crisis

The Indian government is taking proactive measures to support exporters affected by the ongoing Red Sea crisis. Union Minister Piyush Goyal announced that the Centre is working on an insurance scheme to mitigate potential losses due to damaged, lost, or delayed export cargo.

Key Developments:

• The commerce ministry has established schemes to provide insurance cover for export cargo.
• A 24-hour helpline has been set up to resolve any issues related to exports.
• Standard Operating Procedures (SOPs) are being constantly updated to assist cargo that needs to be returned to India for customs or port support.

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Recent Success:

• Nanda Devi, India's second LPG carrier, successfully exited the Strait of Hormuz and entered open waters on Saturday.
• The vessel is being escorted by the Indian Navy and is expected to reach an Indian port within the next two days.
• Nanda Devi is carrying 46,000 metric tonnes of liquefied petroleum gas (LPG), a critical component of India's energy supply chain.

Previous Efforts:

• The first Indian LPG vessel, Shivalik, had already begun its movement through the Strait of Hormuz after negotiations secured safe passage.

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The Indian government's efforts to support exporters and ensure the safe movement of energy cargo through the Gulf region demonstrate its commitment to maintaining the country's energy supply chain.