Coastal Shipping Bill 2024 passed by Lok Sabha

Context

The Lok Sabha has passed the Coastal Shipping Bill 2024.

About 

• The Bill regulates vessels engaged in trade in Indian coastal waters, which encompass territorial waters and adjoining maritime sectors.
• The Bill is based on global best practices and devoted laws of fundamental maritime countries.
• It consolidates and amends laws related to coastal shipping, promotes coasting etrade, and encourages domestic participation.

Major Highlights

• • Coastal Waters: Territorial waters enlarge as much as 12 nautical miles (about 22 km), and adjacent maritime sectors extend as much as 200 nautical miles (approximately 370 km).
  • Repeal of Merchant Shipping Act: The Bill seeks to repeal Part XIV of the Merchant Shipping Act, 1958, regulating ships in coastal trade.
  • Vessel Types Covered: The Bill regulates all kinds of vessels, along with ships, boats, cruising vessels, and mobile offshore drilling units.
  • Expansion of Coasting Trade Definition: The Bill expands coasting trade to including services like exploration, studies, and different industrial activities (except fishing).

• Licence Requirements:
• • Vessels wholly owned via Indian citizens don’t need a licence for coasting trade.
  • Vessels not absolutely owned through Indian residents want a licence.
  • Overseas Citizens of India (OCIs) hiring vessels for operations out of doors India are exempt from the licence requirement.
• Licence Issuance: The Director General of Shipping, appointed by the primary authorities, issues licences.
• Increased Penalties: The Bill increases the maximum fine for unlicensed coasting trade to Rs 15 lakh or 4 times the profits from the unlicensed voyage.
• National Strategy Plan: The critical government ought to put together a National Coastal and Inland Shipping Strategic Plan in 2 years of the Act’s graduation.
• National Database: Introduces a National Database for Coastal Shipping to enhance transparency and coordination.
• Exemption Powers: The central government has the energy to exempt positive instructions of vessels from the Bill’s provisions.
• Ease of Doing Business: Removes the general trading license requirement for Indian ships and decreases compliance burdens.
• Support for Indian Shipbuilding: Encourages foreign vessels to help Indian shipbuilding and employment for seafarers.

India’s Shipping Sector

• Cargo Traffic Growth: Coastal shipment site visitors surged by 119% from 2014-2024, with a target of 230 million tonnes by 2030.
• Achievements: The Ministry of Ports, Shipping, and Waterways has extended shipment managing ability by 103% in the last decade.
• Port Ranking Improvement: India’s port rating stepped forward from 54th in 2014 to 38th in 2023, with nine Indian ports now in the top 100 globally.
• Future Goals: India has outlined investments of US$ 82 billion in port infrastructure projects by 2035 to reinforce the maritime sector.

Initiatives through Government

• Sagarmala Programme: Focuses on leveraging India’s shoreline and of navigable waterways.
• Maritime India Vision 2030 (MIV 2030): Aiming for India to grow to be a top 10 shipbuilding state by 2030 and create a world-magnificence, green, and sustainable maritime environment.
• Inland Waterways Development: 26 new national waterways identified by the Inland Waterways Authority of India (IWAI).
• Green Tug Transition Program (GTTP): Aims to replace gas-based harbour tugs with green, sustainable fuel-powered tugs.
• Sagarmanthan Dialogue: An annual maritime strategic communication to place India as a global center for maritime conversations.
• Maritime Development Fund: ₹25,000 crore fund for long-term financing to modernize ports and shipping infrastructure, encouraging private funding.
• Shipbuilding Financial Assistance Policy (SBFAP 2.0): Modernized to help Indian shipyards compete with global giants.

Conclusion

• The Bill seeks to release the total potential of India’s considerable and strategic coastline, imparting a committed legal framework for coastal trade.
• It will lessen our dependence on foreign vessels and extensively lower logistics charges, promote green shipping, and create jobs in shipbuilding, port services, and vessel manning.
• The efforts will take India’s maritime sector toward a sustainable, revolutionary, and future-ready environment, ensuring its region as a valuable player within the international maritime landscape.

Source: The Hindu

UPSC Mains Practice Question

Q. With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for safeguarding maritime security to ensure freedom of navigation and overflight throughout the region. In this context, discuss the bilateral issues between India and China. (2014)

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