Service will be included in coastal trade, according to the new Coastal Shipping Bill

Offshore vessels provide services without engaging in transportation of goods and passengers. “In offshore areas, there is a lot of work going on for oil and gas exploration and research related activities. Those offshore ships are neither taking passengers nor transporting goods. They are supporting drilling, research activities etc. So, we have added service also within the ambit of the Coastal Shipping Bill. If an entity is providing service in any coastal area, then a license will be required if it is not using an Indian flag ship,” a government
official said.

Indian flag ships will be exempted from licensing requirements.

“There was ambiguity in the existing law; service was excluded, only transportation of passengers and goods were included. Now, everything has been made clear,” the official said, noting that a license is required for foreign flag vessels that transport passengers, goods and provide services along the coast.

Service will cover oil and gas exploration activities, dredging, drilling, laying pipeline etc where neither passenger nor cargo is transported. A license will be made mandatory for providing these services with the help of a foreign flag ship for the duration of the contract. The Coastal Shipping Bill 2024 was drafted by carving out Part 14 of the Merchant Shipping Act, 1958 into a separate legislation to help the government make focused policy decisions and give impetus to coastal shipping.

The new Merchant Shipping Bill 2024, which is also awaiting Parliament nod, will only deal with ship registration, survey and certification. The trade part will be covered in the Coastal Shipping Bill which deals with both coastal shipping and export-import (EXIM) trade, the official said.