Bhavayta Mahajan and Larina Mahajan | December 2024
The Coastal Shipping Bill, 2024 was approved by the Union Cabinet. The Bill aims to simplify and modernize regulations in India’s coastal shipping sector.
This Bill aims to enable the statutory imposition of specific licensing conditions, such as requirements for indigenous construction or crew staffing, on foreign vessels engaged in coasting trade, thereby promoting the regulation of such activities and boosting the domestic coastal shipping economy.
The bill will benefit ship owners and shipyards in India, non-vessel operating common carriers and cargo owners, beside seafarers.
The Coastal Shipping Bill will repeal and replace certain provisions of the Merchant Shipping Act, 1958. This new legislation aims to enhance the modal share of coastal shipping from the current 6.4% to 7.5% by 2030, and further to 12% by 2047.
The bill is set to benefit shipowners, shipyards in India, non-vessel operating common carriers, cargo owners, and seafarers. Additionally, Indian shipbuilding is expected to receive a significant boost, as the Ministry of Ports, Shipping and Waterways (MoPSW) officials indicate that the bill will promote the use of India-built ships for coastal shipping and trade.