The Bill could pave the way for several
transformative measures aimed at boosting traffic at major ports and enhancing
the overall efficiency of the maritime industry, with changes particularly
benefiting domestic shipping companies. The Coastal Shipping Bill 2024 aims to modernize
and streamline the shipping industry by introducing several key reforms:
1.
Removal of Trading Licence
Requirement: The Bill proposes to eliminate the need for
Indian-flagged vessels to obtain a trading license for conducting coastal
trade. This move is expected to simplify regulatory procedures and encourage
more domestic shipping operators to engage in coastal shipping, thus enhancing
the sector’s competitiveness.
2.
Alignment with Global
Standards: The Bill also seeks to align regulations governing
international trade ships with global standards. This will help Indian vessels
meet international benchmarks and make them more competitive in global maritime
trade.
3.
Integration of Coastal and
Inland Waterways: In a bid to reduce transportation costs and
improve logistics efficiency, the Bill proposes to integrate coastal maritime
transport with inland waterways. This move will enhance connectivity between
India’s extensive network of rivers and its coastal ports, creating a more
seamless and cost-effective transport chain.
4.
Increased Share for Indian
Vessels: Another significant focus of the Bill is to increase
the market share of Indian vessels in coastal shipping. Steps are expected to
be introduced to ensure that Indian-flagged ships play a more dominant role in
coastal trade, boosting domestic maritime industry growth.
The proposed Coastal Shipping Bill is part of
India’s broader strategy to accelerate the growth of its maritime sector. Shipping Minister Sarbananda Sonowal recently
stated that India is targeting a two-fold increase in its container handling
capacity over the next five years, creating an estimated 20 lakh jobs. The Bill
is expected to play a crucial role in achieving this ambitious target by
providing a more conducive regulatory environment for growth.
The government is also
planning to establish shipbuilding and repair clusters in five states—Gujarat,
Maharashtra, Kerala, Andhra Pradesh, and Odisha.
The maritime industry has
witnessed rapid expansion in recent years, necessitating a dedicated framework
for coastal shipping…. A dedicated policy for coastal shipping will help
address regulatory bottlenecks, promote investment, and improve the overall
efficiency of maritime transport.
India currently ranks as the 16th largest
maritime nation globally,
with the maritime sector contributing to 95% of the country’s trade by volume
and 70% by value, according to Invest India. The country is also a global
leader in ship recycling, ranking third in the world by tonnage.
With 12 major ports and 200
non-major ports, India’s shipping infrastructure is extensive, and the
government’s push to modernize regulations will further strengthen its maritime
capabilities. Jawaharlal Nehru Port Trust in Mumbai remains the largest port in
India, while Mundra is the biggest private port, underscoring the country’s
diverse and growing port ecosystem.
With the expected
approval of the Bill, India’s maritime sector is on the cusp of transformative
growth, contributing not only to the economy but also to
employment generation and infrastructure development across the nation