Foreign non-propelled ships require license for coastal trade under New Shipping Bill

NEW DELHI : Foreign-flagged non-propelled vessels, including mobile offshore drilling units and accommodation barges, will be allowed to operate in India’s coastal trade under a new Coastal Shipping law, pending approval from Parliament.

These vessels will need to obtain a license from the country’s maritime regulator, a step aimed at fostering competition and enhancing sector efficiency. The move also ensures that non-propelled vessels comply with regulatory standards for safety, security, and pollution prevention.

At present, non-propelled vessels are not required to obtain a license from the maritime regulator to operate in India’s coastal trade, leaving them outside regulatory oversight,” a government official stated. “We are addressing this gap,” he added.

The decision to regulate non-propelled vessels stems from the tragic sinking of an Indian-registered accommodation barge in May 2021 during Cyclone Tauktae. The incident, which occurred off the Mumbai coast, claimed 86 lives. The barge, carrying 261 people, was deployed by Afcons under a contract with Oil and Natural Gas Corporation Ltd.

The regulation of coastal trade lacks uniformity, the official said. Non-mechanised vessels engaged in coastal trade are governed by the Coasting Vessels Act, 1838 which only deals with registration of such vessels.The measures pertaining to regulation, safety, security and pollution prevention of non-propelled vessels were left unaddressed, he said. The mechanised vessels on the other hand fall under the purview of the Merchant Shipping Act, 1958.

The present regulatory framework under the Merchant Shipping Act requires Indian ships as well as ships chartered by Indian citizens and foreign vessels to obtain licence before taking ship to sea, including for coastal trade.

The government aims to enhance safety compliance by mandating foreign-flagged non-propelled vessels to obtain a license for operating in India’s coastal trade.

“To secure a license, these vessels must have valid survey certifications, which is a positive step for safety,” the official stated. “All vessels, whether propelled or non-propelled, should be regulated. While propelled ships already meet safety standards, incorporating safety features for non-propelled ships will significantly improve overall maritime safety,” he added.