The Union government is in the final steps of coming out with new rules for coastal shipping, under which foreign vessels will be allowed to operate in Indian coastal waters, effectively lifting the current Cabotage rules.
“The new rules (for coastal shipping) will be announced by Prime Minister Narendra Modi and Shipping Minister Sarbananda Sonowal at the Global Maritime India Summit 2023,” a senior government official said.
He added that with the new norms for coastal shipping, the government is looking to increase the share of cargo movement through the coastal route, while also protecting the interest of local shipping lines.
“The new norms have been made in consultation with the Indian shipping industry and offer an opportunity for all parties to grow,” the official said.
Towards lower logistics costs
Another official aware of the ongoing discussions said that the new norms for coastal shipping are in line with the government’s policy of reducing logistics costs in the country.
“The aim of the new coastal shipping rules is to increase the share of cargo movement through coastal shipping to around 10 percent from the current 7 percent by 2025,” the second official said. He added that by 2030 the government aims to transport around 15-18 percent of India’s cargo through coastal shipping. Currently, cabotage rules, which govern coastal shipping in India, allow Indian registered ships to ply on local routes carrying cargo.
