Coastal Shipping Bill 2024 awaits Cabinet’s approval soon

NEW DELHI : Shares of Shipping Corporation of India (SCI) and Great Eastern Shipping Company jumped up to 5 per cent on the BSE amid reports that the Centre is likely to approve the Coastal Shipping Bill 2024 in the Cabinet meeting very soon.

Shipping Corporation’s shares rose 4.6 per cent to hit an intraday high of Rs 249.45. On a year-to-date (YTD) basis, the stock has gained over 51 per cent. Shares of Great Eastern Shipping Company jumped 2.58 per cent to touch the day’s high of Rs 1,312. The stock has surged around 35 per cent in the ongoing calendar year so far.

The rally follows the report by CNBC Awaaz that the Centre may give its nod to the Coastal Shipping Bill to ease out the rules in the shipping sector and boost business activity on the ports.

The bill is expected to be approved by the Cabinet today and will be presented in the Parliament next month, when the session resumes. If the Bill does not face any resistance, it will likely come into force in the next 2-3 months.

With the aim to improve traffic at major ports, the bill proposes to remove the requirement of trading licence for Indian flag vessels for coastal trade. Regulations for international trade ships are also likely to be aligned to global standards.

This means that ships bearing an Indian flag will no longer require licences to enter ports and the ships bearing an international flag will have licensing aligned with international standards.

The Bill also proposes to integrate coastal maritime transport with inland waterways. The Centre aims to create a favourable environment to lower transportation costs while promoting competition within the sector. It could also introduce measures for Indian vessels to increase their share in coastal shipping.