India’s maritime industry has taken a significant leap with the introduction of the Coastal Shipping Bill, 2024, aimed at enhancing the country’s coastal trade. This bill, presented by Union Minister Sarbananda Sonowal, is designed to foster growth in India’s shipping sector by making regulatory reforms, creating jobs, and ensuring greater participation of Indian vessels in coastal trade. The new bill also emphasizes reducing dependency on foreign vessels and encourages the use of Indian-flagged ships to enhance the nation’s shipping industry.
Comparison of Current and Proposed Coastal Shipping Regulations
| Current Regulations | Proposed Coastal Shipping Bill 2024 |
| Non-mechanized vessels governed by the Coasting Vessel Act of 1838 | Ban on unlicensed foreign vessels in coastal trade |
| Mechanized vessels regulated by the Merchant Shipping Act of 1958 | Introduction of a National Database for Coastal Shipping |
| No unified framework for inland and coastal shipping | Inland vessels to participate under specified conditions |
| No clear licensing system | Licensing based on crew citizenship and ship construction |
Key Features of the Coastal Shipping Bill 2024
The Coastal Shipping Bill, 2024 aims to create a more efficient and robust coastal shipping system by incorporating several key features that will drive growth in the maritime sector:
- Ban on Unlicensed Foreign Coastal Vessels
The bill proposes a ban on foreign vessels operating in India’s coastal waters without proper licenses. This move intends to boost the participation of Indian-flagged ships in coastal trade and promote self-reliance in maritime transport. - Inland Vessels’ Participation
The bill allows certain inland vessels to be included in coastal shipping under specified conditions. This will help in expanding the scope of coastal shipping and integrating inland and coastal shipping systems for more efficient transportation. - Licensing Framework
A new licensing system will be implemented where the Director-General will issue licenses based on criteria such as crew citizenship and ship construction. This will provide opportunities for Indian seafarers to work in the coastal shipping sector while also supporting India’s shipbuilding industry. - National Database for Coastal Shipping
A National Database for Coastal Shipping will be established, which will serve as a central hub for sharing and storing data related to coastal shipping activities. This will enhance transparency and improve the efficiency of the shipping sector by making data easily accessible. - Strengthening Domestic Shipbuilding
One of the main goals of the bill is to strengthen the domestic shipbuilding sector. By promoting the use of Indian-flagged ships and incentivizing Indian ownership, the bill aims to enhance India’s shipbuilding capabilities and reduce reliance on foreign vessels.
Licensing and Regulatory Framework in the Coastal Shipping Bill
The Coastal Shipping Bill 2024 introduces a new regulatory framework to address existing gaps in the industry. One of the key aspects of the bill is the assurance of due process for the suspension or revocation of licenses. This provision ensures that license holders have the right to be heard before any action is taken against them, thus guaranteeing fairness and accountability in the licensing process.
Current Regulatory Landscape of Coastal Shipping
India’s current regulatory system for coastal shipping is outdated and inconsistent. Currently, non-mechanized vessels are governed by the Coasting Vessel Act of 1838, while mechanized vessels are regulated under the Merchant Shipping Act of 1958. The introduction of the Coastal Shipping Bill 2024 aims to harmonize these rules and create a more streamlined regulatory framework.
The Impact of the Coastal Shipping Bill on India’s Maritime Industry
The Coastal Shipping Bill 2024 is expected to have a profound impact on India’s maritime industry by:
- Boosting employment opportunities for Indian seafarers.
- Creating a more efficient and transparent shipping system through the National Database for Coastal Shipping.
- Encouraging the development of India’s shipbuilding industry, which will reduce dependence on foreign vessels.
- Providing a more balanced regulatory framework that will simplify existing rules and offer fairness and accountability.
India’s 7,500 km coastline and proximity to major global shipping routes make coastal shipping a strategic advantage for the country. The Coastal Shipping Bill 2024 aims to leverage this advantage by making coastal and inland shipping more efficient and integrated.
Coastal Shipping Bill 2024- Summary
- The Coastal Shipping Bill 2024 was introduced by Union Minister Sarbananda Sonowal in the Lok Sabha.
- The bill aims to promote Indian-flagged vessels owned by Indian citizens.
- It seeks to ban unlicensed foreign vessels from coastal trade and allow certain inland vessels to participate.
- A National Database for Coastal Shipping will be set up to increase transparency.
- The bill includes measures to strengthen the domestic shipbuilding sector and create job opportunities for Indian seafarers.
- Licensing will be based on crew citizenship and ship construction, ensuring fairness and accountability.
The bill was passed in the Lok Sabha despite protests related to violence in Uttar Pradesh and the Adani controversy.
The Coastal Shipping Bill 2024 is a legislative measure introduced to regulate and enhance India’s coastal shipping industry by promoting Indian-flagged vessels, encouraging Indian shipbuilding, and creating jobs for seafarers.
The bill aims to ban unlicensed foreign vessels in coastal trade, allow inland vessels to participate, and create a National Database for Coastal Shipping for better transparency and efficiency.
The bill is important because it will help boost India’s domestic shipping sector, reduce reliance on foreign vessels, and create more job opportunities for Indian seafarers.
The bill will streamline the licensing process, promote Indian shipbuilding, and improve the efficiency of coastal shipping by integrating inland and coastal shipping.
The National Database for Coastal Shipping will be a central hub for sharing and storing data related to coastal shipping activities, helping to improve transparency in the industry.