Government introduces Coastal Shipping Bill in Lok Sabha to boost India’s sea power

NEW DELHI : The government on Monday, December 2 introduced a bill in the Lok Sabha aimed at modernising and streamlining the shipping industry. The Coastal Shipping Bill, 2024, will pave the way for several transformative measures to boost traffic at major ports and enhance the overall efficiency of the maritime industry, with changes particularly benefiting domestic shipping companies. 

Shri Sarbananda Sonowal, Minister of Ports, Shipping and Waterways, introduced the bill in the Lower House amid din over demand from the Opposition members to discuss issues including allegations against industrialist Gautam Adani and his indictment in the US, the Manipur unrest and the recent violence in Sambhal, Uttar Pradesh. 

The bill once enacted will create a more favourable environment for domestic shipping operators, reducing bureaucratic hurdles and encouraging greater participation in both coastal and international trade. It also proposes to eliminate the need for Indian-flagged vessels to obtain trading licences for conducting coastal trade. The move is aimed at simplifying regulatory procedures and encouraging more domestic shipping operators to engage in coastal shipping. 

The bill, cleared by the Cabinet in October, also seeks to align regulations governing international trade ships with global standards with the aim of helping Indian vessels meet international benchmarks and becoming more competitive in global maritime trade. The bill also seeks to create a National Database of Coastal Shipping to ensure transparency of procedure and aid in information sharing. 

“Coastal shipping in India holds great potential owing to the vast coastline of around 7,500 kilometres and proximity to important global shipping routes. It has been recognised that maritime transportation, particularly coastal shipping, is cheaper compared to other modes of transportation. There is a need to improve transport connectivity and support infrastructure in the coastal maritime transport sector,” Sonowal said while introducing the bill.