The Directorate General of Shipping has alerted shipping companies on the possibility of their ships being used for evacuating Indians from the Gulf region in light of the Iraq war.

It has also indicated that protection will be provided to Indian ships in the region.

The directorate general has sensitised Indian shipping companies on the possibility of their ships being deployed for the purpose of evacuating Indian population living in the Gulf region.

Adequate input in this regard has been forwarded to responsible agencies so that the subject of evacuating Indians by ships is undertaken during any contingency that may arise, a press release issued by the directorate says.

The directorate is also co-ordinating with all concerned agencies to provide, if required, protection to Indian ships in the region, the release added.

The decision, if implemented, will primarily affect the Shipping Corporation of India, which has two passenger ships -- M V Harshavardhan and M V Ramanuja -- deployed in the Andaman & Nicobar and Lakshwadweep region.

There are around 15-16 ships deployed in the region which has a capacity to carry between 400 and 1,200 passengers each.

These ships are the link between these regions and the rest of India. Any redeployment of these ships would require the concurrence of the Andaman & Nicobar and Lakshwadweep administrations.

"At a meeting held with shipping lines, officials of the directorate general of shipping said that not only passenger ships but also cargo vessels could be used. However, no further instructions have been issued since then," a senior official with the SCI said.

Meanwhile, freight rates have been stable except for the tanker market which has witnessed a 15-20 per cent fall after the start of the Gulf war.

Further, prices of bunker, the fuel used in shipping companies, has fallen by around 10 per cent. Industry sources say that this is due to the fall in crude prices after the attack on Iraq. Bunker is a derivative of crude.