Union Minister Sarbananda Sonowal To Introduce Shipping Merchant Bill 2024 Today

As the Monsoon Session enters its fourth day, the Lok Sabha is set to resume at 2 PM on Thursday to take up key legislative business, including the Merchant Shipping Bill, 2024, for consideration and passage.

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, is scheduled to move the Merchant Shipping Bill, 2024, for consideration and passage.

The Bill seeks to consolidate and amend existing laws related to merchant shipping, with the aim of ensuring India's compliance with international maritime treaties and conventions. It also aims to promote the growth of Indian shipping and ensure the efficient management of the country's mercantile marine in a manner that best serves the national interest, along with addressing related and incidental matters.

What is The Merchant Shipping Bill 2024?

The Merchant Shipping Bill, 2024 seeks to modernise India’s maritime laws by replacing outdated legislation, expanding vessel coverage, easing ownership norms, and aligning with global conventions. It aims to boost investment, improve seafarer welfare, enhance offshore regulation, and strengthen coastal security, promoting ease of doing business in the shipping sector.

Why a New Bill? Setting Sail Anew

The Merchant Shipping Bill, 2024 seeks to replace the outdated Merchant Shipping Act, 1958 and the Coasting Vessels Act, 1838, which no longer meet the evolving needs of India’s maritime sector. The existing laws fail to regulate nearly 50% of Indian-flagged vessels operating offshore and lack a legal framework for overseeing private maritime training institutes. They also limit seafarers’ welfare provisions to Indian-flagged ships, despite most Indian seafarers working on foreign vessels. Additionally, the current Act lacks provisions to implement key international conventions and hinders maritime reforms with outdated, license-era regulations, blocking the shift towards a modern, facilitative administration that supports ease of doing business.

Key Features of the Merchant Shipping Bill

Simplified Vessel Registration: The Merchant Shipping Bill, 2024 introduces major reforms to ease vessel registration and attract foreign investment. It lowers the Indian ownership threshold from 100% to 51%, allowing NRIs, OCIs, and LLPs to own and register Indian vessels. While retaining majority Indian control, it permits foreign entities to hold shares, aligning with global practices in the U.S. and Singapore.

The Bill also enables Indian entities to register vessels chartered under bareboat charter-cum-demise agreements, helping capital-constrained entrepreneurs gradually acquire ownership. Additionally, it allows temporary registration of vessels headed for demolition, addressing a key hurdle faced by India’s ship recycling industry, particularly at hubs like Alang.

From Small Boats to Offshore Giants: The Merchant Shipping Bill, 2024 expands the definition of “vessels” to cover a wide range of crafts, both mechanised and non-mechanised, including submersibles, semi-submersibles, hydrofoils, amphibious crafts, MODUs, MOUs, drones, and pleasure crafts. The current law regulates only larger mechanised ships, leaving smaller and offshore vessels outside its scope, creating serious oversight gaps.

This expanded coverage is especially vital for India’s growing offshore sector, which employs diverse vessel types since the advent of Sagar Samrat in 1974. By bringing these crafts under a uniform regulatory framework, the Bill aims to improve safety, operational standards, and transparency.

It also addresses maritime security concerns, highlighted by the 26/11 attacks, by empowering authorities to issue directives to all categories of vessels, ensuring better coastal surveillance and national security.

Also Read: "Centre to Invest Rs 5,000 Cr to Boost NE Waterways”: Sarbananda Sonowal