Context:
Lok Sabha recently passed the Coastal Shipping Bill, 2024. This landmark legislation is poised to revolutionize coastal trade, providing a dedicated legal framework for the efficient, cost-effective, and sustainable movement of goods via India’s vast coastline.
Key provisions of Coastal Shipping Bill, 2024
1. Coverage and Definitions:
o The Bill applies to all types of vessels operating within India’s territorial waters (up to 12 nautical miles) and adjacent maritime zones (up to 200 nautical miles). This includes ships, boats, sailing vessels, and mobile offshore drilling units.
2. Licensing Requirements:
o Indian-owned Vessels: Vessels that are wholly owned by Indian entities do not require a license to operate in coastal shipping.
o Foreign-owned or Chartered Vessels: Vessels hired by Indian entities, NRIs, or OCIs for operation between Indian and international ports must acquire a license from the Director General of Shipping.
3. Regulations and Penalties:
o The Bill establishes stringent rules regarding compliance and introduces severe penalties for violations:
§ License Revocation: The Bill outlines clear grounds for revoking the license of non-compliant vessels.
§ Fines: Non-compliance could lead to substantial fines, up to Rs 15 lakh or four times the gains derived from the violation.
§ Civil Penalties: Civil penalties for offenses such as unauthorized coasting trade can be as high as Rs 5 lakh or two times the gains.
4. Strategic Planning:
o The Central Government is mandated to prepare a National Coastal and Inland Shipping Strategic Plan within two years. This plan will focus on:
§ Improving route planning to make coastal shipping more efficient.
§ Forecasting traffic to help stakeholders anticipate demand.
§ Integrating coastal shipping with inland waterways, promoting a more cohesive and streamlined logistics ecosystem.
5. Exemptions and Compounding:
o The Central Government can grant exemptions for certain types of vessels or specific provisions under the Bill.
o Compounding Offenses: Only specific offenses, like engaging in coastal trade without a license or breaching detention orders, are eligible for compounding, where penalties can be settled without a formal trial.
Objectives of the Coastal Shipping Bill, 2024
The key objectives of the Bill are:
- Modernizing coastal shipping regulations to provide a framework for the next 25 years.
- Reducing logistics costs by promoting coastal shipping as a cost-efficient and sustainable alternative to road and rail transport.
- Unlocking India’s coastal shipping potential and boosting economic growth by creating jobs in shipbuilding, port services, and seafaring.
Conclusion
The Coastal Shipping Bill, 2024 is a vital step toward revitalizing India’s maritime sector. By modernizing regulations, introducing stringent compliance measures, and laying out strategic plans for growth, the Bill not only aims to streamline coastal trade but also contributes to the sustainable development of India’s logistics and transportation networks.
