On December 2, the government presented a bill to the Lok Sabha with the goal of modernizing and simplifying the maritime sector. Several revolutionary methods to increase traffic at key ports and improve the overall efficiency of the maritime industry will be made possible by the Coastal Shipping Bill, 2024. Domestic shipping companies will especially profit from these developments.
In the midst of opposition members’ demands to address issues such as the accusations against industrialist Gautam Adani and his indictment in the United States, the unrest in Manipur, and the recent violence in Sambhal, Uttar Pradesh, Sarbananda Sonowal, Minister of Ports, Shipping, and Waterways, introduced the bill in the Lower House.
After it is passed, the law will improve conditions for domestic shipping companies by lowering red tape and promoting more involvement in both local and foreign trade. Additionally, it suggests doing away with the requirement that ships flying the Indian flag seek trading licenses in order to engage in coastal commerce. The goal of the action is to encourage more domestic maritime companies to participate in coastal shipping while streamlining regulatory processes.
In order to enable Indian vessels to achieve international standards and become more competitive in the global marine trade, the law, which was approved by the Cabinet in October, also aims to harmonize legislation controlling international trade ships with global standards. In order to facilitate information sharing and guarantee procedural transparency, the law also aims to establish a National Database of Coastal Shipping.
India’s 7,500-kilometer coastline and close proximity to major international shipping lanes make it a country with enormous potential for coastal shipping. It is well known that, when compared to other forms of transportation, maritime transportation—especially coastal shipping—is less expensive. When introducing the bill, Sonowal stated that the coastal maritime transport sector needed better support infrastructure and transportation linkages.
