The Lok Sabha passed the Coastal Shipping Bill, 2024, marking a pivotal step towards transforming the country’s logistics framework.
The legislation aims to establish a dedicated legal structure for coastal trade, enhancing the efficiency, sustainability, and cost-effectiveness of maritime transport. The bill seeks to harness the strategic potential of India’s extensive coastline, enabling seamless movement of goods across ports and fostering regional economic growth. This development aligns with the National Logistics Policy, reflecting the government’s broader vision of creating an integrated, zero-carbon, and eco-friendly transportation network. The Coastal Shipping Bill, 2024, is designed to bridge regulatory gaps left by older legislations, notably the Merchant Shipping Act, 1958. It introduces forward-looking provisions that streamline licensing processes, regulate foreign vessels, and integrate coastal trade within the national logistics ecosystem. Key highlights of the bill include the establishment of a National Coastal and Inland Shipping Strategic Plan, aimed at optimising the use of maritime routes and ensuring sustainable growth. Moreover, the creation of a National Database for Coastal Shipping will enhance transparency, improve data-driven decision-making, and foster better coordination among stakeholders.
An official from the Ministry of Ports, Shipping, and Waterways elaborated, “The bill is not just about maritime trade; it’s about reducing logistics costs, promoting green transport solutions, and generating employment across the shipbuilding and port sectors.” One of the bill’s central goals is to bolster the domestic maritime industry. It includes provisions that encourage Indian ownership and operation of coastal vessels, reducing reliance on foreign entities. The removal of the general trading license requirement for Indian ships simplifies compliance, facilitating greater participation from local businesses. Additionally, the legislation permits foreign vessels to engage in coastal trade only under specific licenses, fostering a competitive environment while safeguarding the interests of Indian shipowners and seafarers. This move aligns with the “Make in India” initiative, aiming to stimulate growth in the shipbuilding industry and create thousands of jobs in vessel manning, port services, and related sectors. In line with the government’s commitment to sustainability, the Coastal Shipping Bill introduces measures to promote environmentally friendly practices. These include prioritised berthing for green vessels, expedited green clearance channels, and reduced GST on bunker fuel to incentivise the use of cleaner fuels.
The bill’s emphasis on eco-friendly transport solutions supports India’s broader climate goals, contributing to the reduction of carbon emissions in the maritime sector. With coastal cargo traffic having surged 119% over the past decade, the need for sustainable infrastructure has never been more critical. The bill also focuses on regional development by integrating coastal shipping with inland waterways. This synergy is expected to unlock new economic opportunities in riverine and coastal states such as Odisha, Karnataka, and Goa, enhancing connectivity and boosting local economies. Furthermore, the legislation ensures that States and Union Territories play an active role in shaping maritime strategies. A committee comprising representatives from major ports, State Maritime Boards, and experts will draft the National Coastal and Inland Shipping Strategic Plan, reflecting the principles of cooperative federalism. The introduction of a National Database for Coastal Shipping will streamline operations, improve regulatory oversight, and facilitate real-time monitoring of maritime activities. This digital infrastructure is critical for efficient planning, policy-making, and disaster management in the maritime domain.
The bill also expands the scope of entities permitted to charter foreign vessels, including Indian citizens, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Limited Liability Partnerships (LLPs). This inclusivity ensures a broader participation base in India’s growing coastal shipping economy. Addressing concerns from various quarters, an official asserted that the bill is grounded in cooperative federalism. “The Coastal Shipping Bill, 2024 upholds cooperative federalism by ensuring the active participation of States and Union Territories,” the official stated. 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 provision guarantees States a direct role in shaping the country’s coastal shipping strategy. The integration of coastal shipping with inland waterways offers new possibilities for regional development and economic growth, particularly in riverine and coastal states. By recognising the role of States in this process, the bill ensures that the maritime sector grows in a collaborative and inclusive manner, in line with India’s broader development goals. The Coastal Shipping Bill, 2024, marks a transformative phase in India’s journey toward becoming a global maritime powerhouse. By addressing long-standing regulatory challenges, promoting sustainable practices, and fostering inclusive growth, the bill lays the foundation for a resilient and future-ready maritime sector.
As the legislation moves through the final stages of implementation, stakeholders across the shipping, logistics, and regional development sectors will be closely watching its impact. The government’s proactive approach signals a commitment to not just economic growth but also environmental stewardship and social equity.
Lok Sabha Passes Coastal Shipping Bill for Regional Growth
