The Bill provides a dedicated legal framework for coastal trade and regulate all types of vessels, including ships, boats, sailing vessels, and mobile offshore drilling units.

Key Provisions of Bill

• License for Coasting Trade: It removes the requirement of trading license for Indian vessels while foreign vessels require a license issued by the Director General of Shipping (DGS).
  • Coasting trade refers to the carriage of goods or passengers by sea from one place or port in India to another.  
• Strategic Plan and Database: It mandates the formulation of a National Coastal and Inland Shipping Strategic Plan (revised biennially) and formation of a National Database for Coastal Shipping.
• Authority to DGS: It grants DGS the authority to seek information, issue directions, and enforce compliance.
• Central Government: It empowers the Central Government to provide exemptions and regulatory oversight, ensuring streamlined and efficient coastal shipping operations in India.

Significance

• Decongest road and rail network by propelling inland waterways and riverine economies.
• Reducing dependence on foreign vessels for critical areas by developing a coastal fleet owned and operated by Indian entities.
• Reduced Logistics cost, promotes green transport and regional development of coastal areas.