New Delhi, Aug 5 (IANS): The union cabinet on Wednesday gave its approval to the proposal of the shipping ministry for decentralising existing chartering arrangements to provide flexibility to state government departments and public sector undertakings (PSUs) to make their own shipping arrangements for ocean transportation of cargo.

Official sources said the measure was aimed at helping various departments and PSUs in taking quick decisions to efficiently manage their cargo supply and logistic chain operations and add to their competitiveness.

The sources said the central government departments under them can make their own shipping arrangements of bulk cargo, both dry and liquid, with having to route their requirement through the ministry of shipping.

This will be subject to their following the present government policy including right of first refusal to Indian ships.

The move of enabling direct chartering arrangements will not only give flexibility to government departments and PSUs to make tailor made solutions for cargo operations in a dynamic global shipping market but also promote Indian tonnage, the sources said.