The Lok Sabha passed the Coastal Shipping Bill, 2024, paving the way for a dedicated legal framework for coastal trade as the maritime sector aims to provide a economical, reliable and sustainable mode of transportation as it decongest road and rail network.
The proposed bill introduces key provisions for licensing and regulating foreign vessels in India’s coasting trade. It mandates the formulation of a National Coastal and Inland Shipping Strategic Plan and establishes a National Database for Coastal Shipping. The bill also regulates foreign vessels chartered by Indian entities and outlines penalties for violations, aligning with the government’s push for decriminalising laws. Additionally, it grants the Director General of Shipping authority to seek information, issue directions, and enforce compliance, while empowering the Central Government to provide exemptions and regulatory oversight, ensuring streamlined and efficient coastal shipping operations in India.
The Coastal Shipping Bill, 2024 aims to reduce logistics costs and promote sustainable transport. Coastal shipping, a cost-efficient and low-emission mode of transport, will play a key role in easing India’s overburdened road and rail networks. Key provisions of the Bill include the removal of the general trading license requirement for Indian ships (Clause 3), reducing compliance burdens and enhancing ease of doing business. Foreign vessels can engage in coastal trade only under a license issued by the Director General of Shipping (Clause 4), with conditions that support Indian shipbuilding and employment for seafarers. The Bill mandates a National Coastal and Inland Shipping Strategic Plan (Clause 8), revised biennially, to improve route planning, forecast traffic, and integrate coastal shipping with inland waterways. This strategic vision ensures long-term growth and sustainability in India’s maritime sector.
