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Posted 03 Dec 2024

2 min read

Bill's purpose is to consolidate and amend laws governing coastal shipping (Uniformity in regulation), promote coastal trade, connectivity and encourage domestic participation. 

  • Coastal shipping in India holds great potential owing to its vast coastline (~ 7,500 km) and proximity to important global shipping routes.  

Key Highlights of Bill 

  • Prohibition of coasting trade: Prohibition of trade in coastal water without license by vessels other than Indian vessels. 
    • Permitting Inland vessels to engage in coastal trading. 
  • National Coastal and Inland Shipping Strategic Plan: For development, growth and promotion of coastal shipping. 
  • National Database of Coastal Shipping:  To ensure transparency of procedures and aid in information sharing.  
  • Licensing of chartered vessels: Empower the Director-General to issue a license after taking into consideration certain factors including citizenship of crew and building requirements of vessel. 
    • No license granted shall be suspended, revoked or modified, unless the license has been given a reasonable opportunity of being heard. 
  • Other Provisions: Provision for compounding of certain offences and imposition of penalty by the principal officer; and provision for empowering the Director-General to call for information in respect of certain matters. 

About Coastal Shipping Industry  in India:  

  • Refers to movement of goods and passengers along coastlines within territorial waters, extending up to 12 nautical miles from baseline.  
  • Regulation of Coastal Shipping: 
    • Directorate General of Shipping, under Ministry of Ports, Shipping, and Waterways, is primary regulatory authority. 
    • Coastal Regulation Zone regulations further influence activities in these coastal areas. 
  • India’s cabotage policy: restricts operation of foreign-flagged vessels for transporting goods within country’s territorial waters. 
  • Tariffs and charges: Tariff Authority for Major Ports (TAMP) regulates tariffs and charges
    for major ports involved in coastal shipping.
  • Tags :
  • Coastal Shipping Bill, 2024
  • Coastal Shipping Industry
  • National Database of Coastal Shipping
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