Coastal Shipping Bill, 2024

December 4, 2024

The Lok Sabha recently witnessed the introduction of a new Bill aimed at enhancing coastal trade, presented by Union Minister Sarbananda Sonowal. These protests were related to violence in Uttar Pradesh and the Adani controversy, which focuses on promoting Indian-flagged vessels owned by Indian citizens.

Key Features of the Bill

The Bill seeks to ban unlicensed coastal trade by foreign vessels, allows certain inland vessels to participate under specified conditions. The Director-General will issue licenses based on crew citizenship and ship construction, which aims to create job opportunities for Indian seafarers and strengthen the domestic shipbuilding sector.

National Database for Coastal Shipping

A National Database for coastal shipping will be established, which aims to enhance transparency and facilitate information sharing. The database will serve as a central repository of data related to coastal shipping activities.

The Bill outlines a comprehensive plan for the development of both coastal and inland shipping. This development is essential for utilising India’s extensive 7,500 km coastline. The proximity to major global shipping routes further supports this initiative.

Licensing and Regulatory Framework

Licenses for coastal shipping cannot be suspended or revoked without due process. License holders will have the opportunity to be heard before any action is taken. This provision ensures fairness and accountability in the licensing process.

Current Regulatory Landscape

The existing regulations for coastal shipping are inconsistent. Non-mechanized vessels follow the Coasting Vessel Act of 1838. Mechanized vessels are governed by the Merchant Shipping Act of 1958. The new Bill aims to address these inconsistencies.

Despite opposition protests, the Coastal Shipping Bill, 2024, was introduced through a voice vote. This Bill is part of five new measures planned for the current Winter Session of Parliament.

Important Facts for Exams:
Coasting Vessel Act of 1838: This historic act governs non-mechanized vessels in India. It primarily focuses on registration. It reflects early maritime regulatory frameworks in the country.
Merchant Shipping Act of 1958: This act regulates mechanized vessels in India. It addresses safety, registration, and operational standards. It remains a mainstay of India’s maritime law.
National Database for Coastal Shipping: This proposed database aims to improve transparency. It will centralise information on coastal shipping activities. It enhances data accessibility for stakeholders in the industry.

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