29 Jun 2021 Gujarat International Maritime Arbitration Centre (GIMAC)

Gujarat International Maritime Arbitration Centre (GIMAC)

Context:

Recently, a Memorandum of Understanding (MoU) was signed between the Gujarat Maritime University and International Financial Services Centre Authority in GIFT (Gujarat International Finance Tec-City) City.

The objective of the MoU is to jointly support the establishment of the Gujarat International Maritime Arbitration Centre (GIMAC).

About:

GIMAC:

• 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 GIMAC will be part of a maritime cluster that the Gujarat Maritime Board (GMB) is setting up in GIFT City at Gandhinagar.

Need:

• India’s Focus on Arbitration: Recently, the Arbitration and Conciliation (Amendment) Act, 2021 was notified, considered as the landmark step towards making India as the hub of International Commercial Arbitration.
• Arbitration is a kind of dispute resolution method where the disputes arising between the parties are resolved by the arbitrators appointed by them instead of state’s legal bodies.
• There are over35 arbitral institutions in India, however, none focus exclusively on the disputes related to the maritime sector.
• With the state continuing to witness a rapid extension in maritime activities and inching closer to becoming a global maritime hub with the implementation of Gujarat Maritime Cluster project, a strong growing and recurring demand is being generated for a specialized facility for maritime arbitration services.
• 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.
• The arbitration involving Indian players is now heard at the Singapore Arbitration Centre.
• Globally, London is the preferred centre for arbitration for the maritime and shipping sector.

Benefits:

• Facilitate faster dispute resolution.
• Enhance the attractiveness of GIFT SEZ(SEZ) among the International Maritime Community.
• Increase the ease of doing business.
• Reduce burden on courts.

Gujarat Maritime Cluster:

• It is conceived as a dedicated ecosystem of Ports, Maritime Shipping and Logistics services providers.
• It will host an array of maritime, shipping industry players and service providers, along with relevant Government regulatory agencies, in GIFT City, Gandhinagar – India’s first International Financial Services Centre (IFSC).
• The International Financial Services Centers Authority (IFSCA)is a unified authority for the development and regulation of financial products, financial services and financial institutions in the IFSC in India.
• It will be a one stop solution for all maritime services while attaining economic growth, employment generation and industry – academia confluence in the region.
  

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Yojna IAS Current Affairs Team