New Delhi [India]: The Lok Sabha has passed the Coastal Shipping Bill, 2024, establishing a dedicated legal framework for coastal trade. This move aims to make maritime transportation more economical, reliable, and sustainable, helping decongest India’s road and rail networks.
Union Minister for Ports, Shipping & Waterways, Sarbananda Sonowal, who introduced the bill, stated that it would unlock India’s vast coastline’s full potential, aligning with the National Logistics Policy and supporting Prime Minister Narendra Modi’s vision for an integrated transport system.
Key Highlights of the Coastal Shipping Bill, 2024
Streamlined Coastal Trade: Introduces a National Coastal and Inland Shipping Strategic Plan to improve route planning, traffic forecasting, and inland waterway integration.
Foreign Vessel Regulation: Requires foreign vessels to obtain a license from the Director General of Shipping for coastal trade, ensuring priority for Indian shipbuilding and seafarer employment.
Ease of Doing Business: Removes the general trading license requirement for Indian ships, reducing compliance burdens and enhancing operational efficiency.
Sustainability and Cost-Reduction: Promotes green transport with low-emission coastal shipping, reducing reliance on overburdened road and rail networks.
Investment-Friendly Approach: Ensures legal clarity and regulatory stability, making India a more attractive destination for maritime investments.
Growth in Coastal Shipping and Future Targets
Coastal cargo traffic has surged 119% in the last decade, from 74 million tonnes in 2014-15 to 162 million tonnes in 2023-24, with an ambitious target of 230 million tonnes by 2030. The bill’s reforms, such as prioritised berthing, green clearance channels, and GST reduction on bunker fuel, are expected to further boost the maritime sector.
Integration with Inland Waterways and State Participation
Minister Sonowal emphasized that integrating coastal and inland waterways will drive regional development in Odisha, Karnataka, Goa, and other coastal states. The bill upholds cooperative federalism, ensuring States and Union Territories play an active role in shaping the National Coastal and Inland Shipping Strategic Plan.
Vision for Atmanirbhar Bharat
The Coastal Shipping Bill, 2024 is a major step toward self-reliance, promoting domestic shipbuilding, employment generation, and regional economic growth. By modernizing outdated regulations from the Merchant Shipping Act, 1958, the bill ensures that coastal trade remains competitive, sustainable, and globally aligned.
With this landmark legislation, India moves closer to becoming a maritime powerhouse, reinforcing its commitment to efficiency, sustainability, and inclusive growth in the shipping sector.