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Informist, Thursday, Apr. 3, 2025

NEW DELHI – The Lok Sabha on Thursday passed the Coastal Shipping Bill, 2024, aimed at modernising and streamlining the shipping industry. The bill, introduced in the lower house on Dec. 2, was approved by a voice vote on Thursday. Opposition members proposed amendments but these were rejected by Speaker Om Birla.

Replying to discussion on the bill in the Lok Sabha, Minister of Ports, Shipping, and Waterways Sarbananda Sonowal said the need for the country is to fully utilise its coastal resources, ensuring smoother access for traders to move goods. "Road constitutes almost 66% of our trade transportation while coastal shipping contributes 5% and inland waters 2% of the freight movement. In European Union, 40% of goods are being transported by waters," Sonowal said.

The Coastal Shipping Bill, 2024, will pave the way for several transformative measures to boost traffic at major ports and enhance the overall efficiency of the maritime industry, with changes particularly benefiting domestic shipping companies.

The bill, once enacted, will create a more favourable environment for domestic shipping operators, reducing bureaucratic hurdles, and encouraging greater participation in both the coastal and the international trade. It also proposes to eliminate the need for Indian-flagged vessels to obtain trading licences for conducting coastal trade. The move is aimed at simplifying regulatory procedures and encouraging more domestic shipping operators to engage in coastal shipping.
 

The bill, approved by the Union Cabinet in October, also seeks to align regulations for international trade vessels with global standards, helping Indian ships meet international benchmarks and boosting their competitiveness in global maritime trade. Additionally, the bill proposes the creation of a National Database of Coastal Shipping to ensure procedural transparency and facilitate better information sharing.
 
"Coastal shipping in India holds great potential owing to the vast coastline of around 7,500 kilometres and proximity to important global shipping routes. It has been recognised that maritime transportation, particularly coastal shipping, is cheaper compared to other modes of transportation. There is a need to improve transport connectivity and support infrastructure in the coastal maritime transport sector," Sonowal said in the Statement of Objects and Reasons of the bill.  End

Reported by Kuldeep Singh

Edited by Subhojit Sarkar

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