The Coastal Shipping Bill, 2024, which replaced Part XIV of the Merchant Shipping Act, 1958, marks a significant legislative reform aimed at modernizing and streamlining India’s coastal trade. It is a key component of the government’s vision for a “Viksit Bharat” and “Aatmanirbhar Bharat,” aiming to unlock the vast potential of India’s coastline. It provides a dedicated legal framework to boost coastal trade, reduce logistics costs, and promote sustainable transportation.

Need for the new Coastal Shipping Bill, 2024:

1. Repeals Part XIV of the Merchant Shipping Act, 1958, which was outdated and limited in scope.
2. Coastal cargo movement had been growing (119% increase from 2014–15 to 2023–24), yet regulatory hurdles, outdated provisions, and fragmented oversight hindered its full potential.
3. Aligns with key national missions such as PM Gati Shakti, National Logistics Policy, Sagarmala Programme and Maritime Amrit Kaal Vision 2047

Key Provisions of the Coastal Shipping Bill, 2024

The Act’s jurisdiction extends to vessels engaged in trade within India’s coastal waters, which include territorial waters (up to 12 nautical miles) and adjoining maritime zones (up to 200 nautical miles).

1. Expanded Definition of Coastal Trade:
   • Earlier: Only carriage of goods and passengers.
   • Now: Includes services such as exploration, research, and commercial activities, excluding fishing.
   • Recognizes maritime zones up to 200 nautical miles from the Indian coast.
2. Simplified Licensing Framework: Supports Indian shipbuilding, maritime employment, and reduces regulatory burden.

1. Mandated Strategic Planning: National Coastal and Inland Shipping Strategic Plan must be prepared within 2 years and reviewed biennially. It is to be designed by a committee with state representation, ensuring cooperative federalism.
2. National Database for Coastal Shipping: Aims for real-time tracking, transparency, and data-driven policymaking. It keeps investors informed and supports infrastructure planning.
3. Modernised Penalties and Decriminalisation

Strategic Vision and Long-term Impact

“This is a forward-looking, holistic framework aligned with global cabotage practices.”

— Union Minister of Ports, Shipping and Waterways

1. Economic Transformation:
   1. Aims to increase India’s coastal cargo share to 230 million metric tonnes by 2030.
   2. Reduces logistics cost (currently ~14% of GDP) by shifting cargo from roads/rails to coastal routes
   3. Coastal shipping is 80% cheaper and more energy-efficient than road transport
2. Environmental Sustainability:
   1. Supports Net Zero by 2070
   2. Encourages green transport and lower-emission logistics
3. Job Creation and Industry Support:
   1. Boosts shipbuilding, port services, and manning jobs
   2. Encourages Make in India in the maritime sector.
4. Strengthened Maritime Security: Greater share of domestic cargo handled by Indian ships reduces reliance on foreign vessels.
5. Cooperative Federalism: Includes states and UTs in decision-making, enabling inclusive and participatory governance.

The Coastal Shipping Bill, 2024, represents a landmark step towards building a seamless, efficient, and globally competitive maritime ecosystem in India. By modernizing regulations, promoting domestic industry, and integrating coastal shipping with inland waterways, the Act lays the foundation for a future-ready logistics network that is central to the nation’s economic and strategic goals.

Mains Practice Question:

1. Discuss the significance of the Coastal Shipping Act, 2025 in India’s vision for a sustainable and cost-effective transport ecosystem.
2. Evaluate the role of strategic planning and digital infrastructure under the new Coastal Shipping Act in achieving India’s Maritime Amrit Kaal Vision 2047.

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