Prelims – Indian polity and Governance.

Mains (GS II) – Government Policies & Interventions.

Why in News?

Lok Sabha recently passed the Coastal Shipping Bill, 2024.

• Aim - It seeks to regulate vessels engaged in trade within Indian coastal waters.
• Definition of coastal waters - Under the Bill, coastal waters mean territorial waters of India, along with adjoining maritime zones.
  • Territorial waters extend up to 12 nautical miles from the coast (about 22 km).
  • Adjoining maritime zones extend up to 200 nautical miles (about 370 km).
• The Bill seeks to repeal Part XIV of the Merchant Shipping Act, 1958, which regulates ships other than sailing vessels engaged in trade within coastal waters. 
• The Bill seeks to regulate all types of vessels, including ships, boats, sailing vessels, and mobile offshore drilling units, regardless of them being self-propelled or not.

Key features

• Services to be also covered under coasting trade - Under the Act, coasting trade refers to the carriage of goods and passengers from one place or port in India to another. 
• The Bill expands this definition to include provision of services.  Services include exploration, research, and any other commercial activity, except fishing.
• Licence for coasting trade and certain other purposes - The Act requires licence for all vessels engaging in coasting trade. 
• The Bill states that vessels wholly owned by Indian persons will not need a licence.
• For purposes other than coasting trade, the Bill requires licence for vessels that are not wholly owned by Indian persons. 
• These are vessels that are
  • Hired by Indian persons, non-resident Indians (NRIs) or overseas citizens of India (OCIs), and
  • Operating between Indian and International ports, or between International ports. 
• OCIs hiring vessels for operating exclusively outside India will not require a licence.
• The licences will be issued by the Director General of Shipping, who is appointed by the central government. 
• The Director General may permit a vessel registered under the Inland Vessels Act, 2021 (operating in inland waterways) to engage in coasting trade.
• Revocation of licences - The Act empowers the Director General to modify or revoke licences.
• The Bill specifies the grounds for modification, suspension, or revocation of licences. These include
  • Violation of terms of licence or an existing law, or
  • Failure to comply with directions of the director general.
• Revision of penalties – The bill revised the penalties and punishments for the offences related to coastal trade.
• Compounding of offences - The Act allows all first offences to be compounded. 
• Under the Bill, only following offences will be compoundable
  • Undertaking coasting trade without licence or with an expired licence,
  • Taking vessel into sea without licence,
  • Failure to furnish information, and
  • Violating a detention order.
• Coastal and Inland Shipping Strategy Plan - The Bill requires the central government to prepare a National Coastal and Inland Shipping Strategic Plan within 2 years of the commencement of the Act.
• Powers to exempt - The central government may exempt any class of vessels from the application of the Bill.

References

1. PIB | Coastal Shipping Bill, 2024
2. PRS India | The Coastal Shipping Bill, 2024