Overview of India's Maritime Legislative Reforms
The passage of the Indian Ports Bill, 2025, alongside other maritime legislation, marks a pivotal shift in India's maritime governance. This legislative package aims to modernize India's outdated and fragmented maritime regulations, aligning them with global standards.
Key Legislation and Intent
- Indian Ports Bill, 2025:
- Repeals the Act of 1908.
- Aims to streamline maritime governance.
- Facilitates ease of business and sustainable port development.
- Merchant Shipping Act, 2025:
- Modernizes registration and ownership rules, safety, and environmental standards.
- Introduces provisions for Bareboat Charter-Cum-Demise registration.
- Coastal Shipping Act, 2025:
- Clarifies cabotage rules to ensure Indian-flagged vessels manage domestic trade.
Critical Concerns
- Centralization of Power:
- The Maritime State Development Council centralizes authority, impacting state autonomy.
- Critics argue it undermines cooperative federalism and fiscal flexibility of coastal states.
- Regulatory Challenges:
- Vague regulatory powers and dispute resolution mechanisms may deter investment.
- Potential for foreign control of Indian-flagged vessels through unclear ownership thresholds.
- Executive Discretion:
- Excessive executive control over licensing and ownership requirements.
- Risk of arbitrary application of laws, particularly in coastal shipping.
Conclusion
Though the reforms are necessary, they risk undermining federal balance and fair competition without significant amendments. Ownership thresholds and licensing rules should be clearly defined in law to ensure transparency and fairness. The current framework could lead to ease of doing business for a select few while weakening federal integrity and maritime security.
