The Rajya Sabha has passed the Coastal Shipping Bill, which eliminates the need for Indian-flagged vessels to secure a general trading license from the Directorate General of Shipping for coastal operations. The Lok Sabha previously approved the Bill, which mandates that foreign-flagged ships—operating under Indian charter—still require a license for coasting trade. Currently, both Indian and foreign vessels must hold licenses to operate, but this new legislation aims to streamline these regulations and increase coastal cargo capacity in line with the Maritime India Vision 2030.
Ports, Shipping and Waterways Minister Sarbananda Sonowal hailed the Bill as a significant measure that would reduce logistics costs, decrease pollution, and alleviate congestion. By simplifying compliance for Indian operators, it is expected to benefit entrepreneurs who can lease vessels for coastal trade, enhancing cargo movement in the region. Foreign vessels will face new licensing criteria, ensuring compliance, while outdated restrictions will be relaxed to improve market competition.
To align with global standards, penalties have been updated, replacing minor fines with monetary penalties for most violations. The Bill also proposes integrating inland waterways with coastal shipping routes, aiming to create a National Coastal and Inland Shipping Strategic Plan for the sector’s long-term development. Supporters believe this framework will boost efficiency, attract investment, and enhance India’s maritime security.
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