Cabinet chaired by PM Narendra Modi approved Coastal Shipping Bill, 2024 & repeal Part XIV of the Merchant Shipping Act 1958 except section 411A. It will benefit Indian ship owners, non-vessel operating common carriers, cargo owners, Indian seafarers & shipyards.
The legislation is designed to cut red tape for shipping operations in India as well as better integrate inland waterway shipments with coastal shipping.
The bill proposes to do away with the requirement of trading licenses for Indian flag vessels for coastal trade. Regulation for international trade ships is also expected to be aligned to global standards.
The Bill also proposes to integrate coastal maritime transport with inland waterways. The Centre aims to create a conducive environment to reduce transportation costs and, at the same time, encourage competition in the sector. Steps could also be put in place for Indian vessels to increase their share in coastal shipping.
It proposes to create a secure, robust framework for regulation of the commercial activity of coastal trade and to create a national database of coastal shipping with information regarding licenses issued.
