The Coastal Shipping Bill- 2025

The Lok Sabha recently passed the Coastal Shipping Bill, 2025, marking a significant milestone in India’s maritime legislation. This comprehensive bill aims to consolidate and amend the laws governing coastal shipping, promote coasting trade, and encourage domestic participation in the sector. It is designed to ensure that India is equipped with a robust coastal fleet owned and operated by Indian citizens, addressing both national security and commercial needs.

Key Highlights of the Coastal Shipping Bill, 2025

1. Regulation of Coasting Trade 

The bill introduces stringent regulations for coasting trade, prohibiting non-Indian vessels from engaging in such activities without a license issued by the Director-General of Shipping. This move is expected to safeguard India’s coastal waters and promote the use of Indian vessels.

2. Licensing Framework

The bill establishes a detailed licensing framework for vessels engaged in coasting trade and chartered vessels. Licenses will be granted based on factors such as safety, maritime security, cost efficiency, and compliance with the Strategic Plan. The Director-General has the authority to suspend, revoke, or modify licenses in case of violations.

3. National Coastal and Inland Shipping Strategic Plan 

A key feature of the bill is the mandate for the Central Government to publish a National Coastal and Inland Shipping Strategic Plan within two years of the Act’s commencement. This plan will assess coastal shipping routes, identify operational improvements, forecast traffic, and recommend measures to promote Indian vessels in coastal shipping.

4. National Database of Coastal Shipping 

The bill requires the Director-General to maintain a web portal for the National Database of Coastal Shipping. This database will include information on licenses, routes, voyages, and reported data, ensuring transparency and accessibility for stakeholders.

5. Offences and Penalties 

To ensure compliance, the bill prescribes strict penalties for violations, including imprisonment, fines, and vessel detention. Offences such as engaging in coasting trade without a license, furnishing false information, or violating detention orders are addressed with severe consequences.

6. Miscellaneous Provisions

The bill empowers the Central Government and the Director-General to issue directions, delegate powers, and exempt certain vessels or entities from the Act’s provisions. It also provides protection for actions taken in good faith and outlines the process for rule-making and addressing difficulties in implementation.

Implications for India’s Maritime Sector 

The Coastal Shipping Bill, 2025, is a forward-looking legislation that aligns with India’s vision of becoming a maritime powerhouse. By promoting domestic participation and ensuring stringent regulations, the bill aims to enhance the efficiency and security of coastal shipping. The emphasis on integrating coastal shipping with inland waterways and other modes of transportation is expected to make maritime transport a cost-effective and sustainable option for goods and passengers.

Conclusion

The passage of the Coastal Shipping Bill, 2025, is a testament to India’s commitment to strengthening its maritime infrastructure and governance. As the bill comes into force, it is poised to transform the coastal shipping landscape, fostering growth, security, and innovation in the sector. With a focus on national interests and commercial viability, this legislation is a significant step towards realizing India’s maritime potential.

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Source: Lok Sabha

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