The Union Ministry of Ports, Shipping and Waterways introduced The Coastal Shipping Bill, 2024, which aims to promote coastal trade and promote the participation of Indian flagged vessels owned and operated by Indian citizens, to meet national security and commercial requirements.
Key Features of Coastal Shipping Bill, 2024
- The Bill aims to prohibit unlicensed coastal trade by foreign vessels.
- It allows participation of inland waterway vessels under certain conditions.
- The Director-General will issue licences based on crew membership and the build of the vessel.
- It aims to create employment opportunities for Indian maritime workers and strengthen the domestic shipbuilding sector.
Background
- Coastal Shipping: Coastal shipping involves the movement of goods and passengers within the coastline (about 7,517 km), in territorial waters. It plays a vital role in global supply chains and is also important for economic growth.
Management of Ports
- Major Ports: Come under the administrative control of the Central Government.
- Minor/Medium Ports: Managed and administered by the respective maritime state governments.
Regulation of obsolete laws
The coastal shipping sector has been regulated under archaic laws, such as:
- Coasting Vessels Act, 1838
- Merchant Shipping Act, 1958
- These laws lack uniformity and updated provisions.
Coastal Shipping
- Coastal shipping means transporting goods and passengers through the sea within the country’s borders. It is usually carried out using small vessels (called coasters). It is also called short sea shipping.
Importance
- Connecting coastal states: Helps to increase connectivity between coastal areas.
- Regional economic development: Boosts regional economy.
- Contribution to global supply chain: Is a significant part of international trade.
- Initiatives to promote coastal shipping in India
The Ministry of Ports, Shipping and Waterways has taken the following steps
- Policy reforms
- Infrastructure investment
- Incentives on use of coastal routes
- Priority Berthing Policy
- Green Channel clearance
- Exemption on vessel and cargo charges
- Reduction in GST on bunker fuel
Importance of Coastal Shipping
- Energy-efficient and economical transport: It is a mode of transport that consumes less energy and is cost-effective, especially for bulk cargo.
- Reducing pressure on road and rail networks: Coastal shipping reduces the traffic load on road and rail networks, helping to reduce congestion and pollution.
- Low impact on environment: It is more eco-friendly than conventional modes of transport.
- Contribution to national security: Strengthens national security by providing strategic and logistical support in emergency situations.