Coastal Shipping Bill Seeks to Harness India's Strategic Coastline: Sonowal

The Lok Sabha has passed the Coastal Shipping Bill, 2024, paving the way for a comprehensive legal framework for coastal trade. The legislation aims to enhance India's maritime sector by promoting an economical, reliable, and sustainable mode of transportation while alleviating congestion on road and rail networks.

Introducing the Bill in the Lower House, Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal emphasized its importance, stating, "The Bill seeks to unlock the full potential of India's vast and strategic coastline, providing a dedicated legal framework for coastal trade."

Key Highlights of the Coastal Shipping Bill, 2024

The Bill seeks to modernize India's coastal trade regulations by streamlining licensing and compliance requirements while aligning with the National Logistics Policy. It replaces outdated provisions of the Merchant Shipping Act, 1958 and introduces key measures such as:

Regulation of Foreign Vessels: Foreign ships can participate in coastal trade only under a license issued by the Director General of Shipping (Clause 4).

Removal of Trading License for Indian Ships: The general trading license requirement has been abolished (Clause 3), reducing compliance burdens and promoting ease of doing business.

National Coastal and Inland Shipping Strategic Plan: Mandates a biennially updated plan (Clause 8) to optimize route planning, traffic forecasts, and integration with inland waterways.

Creation of a National Database for Coastal Shipping: Enhances transparency, coordination, and data-driven decision-making.

Employment & Investment Boost: Strengthens India's shipbuilding sector, creates job opportunities, and promotes green transport solutions.

Highlighting the Bill's long-term vision, Sarbananda Sonowal stated, "The Coastal Shipping Bill aligns local aspirations with national goals and provides a framework for the next 25 years of coastal economic growth under the Maritime Amrit Kaal Vision 2047. The overarching goal of the Bill to develop a coastal fleet owned and operated by Indian entities will lead to reduced dependence on foreign vessels for critical areas relevant for our country's coastal shipping. It will reduce logistics costs, promote green transport, support the vision of Prime Minister Narendra Modi ji's 'Make in India' initiative, and create thousands of jobs in shipbuilding, port services, and manning of vessels."

Strategic Impact on Maritime Growth

With a focus on cost efficiency and low emissions, the Bill strengthens the role of coastal shipping as an alternative to overburdened road and rail networks. Over the past decade, coastal cargo traffic has surged by 119%, from 74 million tonnes in 2014-15 to 162 million tonnes in 2023-24, with a target of 230 million tonnes by 2030.

Addressing the role of coastal and inland waterways integration, Sonowal remarked, "The integration of coastal and inland waterways will promote regional development of riverine and coastal areas alike in the country. This Bill will also give impetus to the long-term vision of development of coastal and inland waterways transport in States such as Odisha, Karnataka, & Goa among others. The integration of coastal shipping routes with inland waterways which often traverse multiple states calls for collective planning and coordinated execution. By recognising the role of States in this regard, this Bill ensures that the growth of coastal shipping is inclusive and participative."

Ensuring Cooperative Federalism

Responding to criticism from opposition parties, Sonowal reaffirmed the Bill’s commitment to cooperative federalism, stating, "The Coastal Shipping Bill, 2024 upholds cooperative federalism by ensuring active participation of States and Union Territories. Under Clause 8(3), a committee—comprising representatives from major ports, State Maritime Boards, and experts—will draft the National Coastal and Inland Shipping Strategic Plan. This guarantees States a direct role in shaping strategy, routes, and regulations. By integrating coastal shipping with inland waterways, the Bill enables collective planning, fostering inclusive growth aligned with Sabka Saath, Sabka Vikas."