Sonowal's Merchant Shipping Bill Passed In Lok Sabha; Here's What Changes

The Lok Sabha on Wednesday passed the Merchant Shipping (Amendment) Bill, 2024, through a voice vote, despite fierce protests from the Opposition demanding a debate on the Special Intensive Revision (SIR) of voter lists in Bihar.

The proceedings, which resumed after an adjournment at 2 p.m. with Sandhya Rai in the chair, were marked by continuous sloganeering and disruptions, bringing normal business to a standstill.

Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal moved the Bill, which seeks to overhaul the Merchant Shipping Act of 1958 and bring India’s maritime regulations in line with key international conventions, including MARPOL (Marine Pollution) and the Wreck Removal Convention.

House Adjourned, Tensions Persist

Following the passage of the Bill, the House was adjourned until Thursday, leaving several other legislative items pending. The ongoing Monsoon Session has already seen repeated adjournments amid persistent political deadlock.

The passage of the Merchant Shipping (Amendment) Bill, 2024, however, marks a crucial step towards modernising India’s maritime sector, promising enhanced safety, environmental sustainability, and global competitiveness.

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The Merchant Shipping Bill, 2024 seeks to modernise India’s maritime laws by replacing outdated legislation, expanding vessel coverage, easing ownership norms, and aligning with global conventions.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.

Despite the uproar, BJP MPs Brajesh Chowta (Dakshina Kannada) and Mukeshkumar Chandrakant Dalal (Surat) managed to express support for the Bill, though their remarks were drowned out by Opposition slogans.

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The Merchant Shipping Bill, 2024 seeks to replace the outdated Merchant Shipping Act, 1958 and the Coasting Vessels Act, 1838, which no longer meet the evolving needs of India’s maritime sector.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 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.

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