The Indian government has introduced the Coastal Shipping Bill aimed at streamlining regulations and promoting the growth of the coastal shipping industry. The bill seeks to address various challenges faced by the sector and create a more conducive environment for maritime trade.
Key Provisions of the Bill:
The bill proposes to repeal Part XIV of the Merchant Shipping Act, 1958, which governs the regulation of Indian ships and those engaged in coasting trade.
The definition of “coasting trade” will be expanded to include offshore vessels providing services without transporting goods or passengers. Coasting trade means carriage of goods or passengers by sea from any port or place in India to any other port or place in India, or performing any service within coastal waters but does not include fishing of any kind.
The bill introduces a licensing regime for vessels engaged in coasting trade, including foreign-flagged non-propelled vessels like mobile offshore drilling units and accommodation barges.
A central database will be created to track information on coasting trade, including vessel movements, cargo details, and licensing information.
The government will develop a National Coastal and Inland Shipping Strategic Plan to promote the growth of the sector.
Benefits of the Bill:
- The simplified regulatory framework will reduce bureaucratic hurdles and promote efficiency in the coastal shipping sector.
- The inclusion of foreign-flagged non-propelled vessels in the regulatory framework will increase competition and lower costs.
- The bill aims to create more jobs for Indian seafarers by promoting the use of Indian-flagged vessels.
- A vibrant coastal shipping sector can contribute to the overall economic growth of the country by reducing transportation costs and improving logistics efficiency.
