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General Studies Prelims

General Studies (Mains)

Major Reforms in India’s Shipping Industry 2024

Major Reforms in India’s Shipping Industry 2024

The Government of India is set to introduce transformative legislation to revolutionise the shipping industry. Key proposals include the Merchant Shipping Bill, 2024 and the Coastal Shipping Bill, 2024. These bills aim to modernise outdated laws and address contemporary challenges in maritime operations.

Need for New Legislation

The existing Merchant Shipping Act, 1958 and Coasting Vessels Act, 1838 are outdated. They fail to cater to the needs of the modern shipping sector. Regulatory gaps exist, especially for offshore vessels, which constitute nearly 50% of Indian-flagged vessels. Current laws do not adequately address the welfare of seafarers working on foreign-flagged ships.

Key Features of the Merchant Shipping Bill

The new bill introduces reforms. It eases registration processes for vessels by reducing ownership requirements from 100% to 51%. This allows foreign investment while ensuring majority Indian ownership. It also permits temporary registration for vessels designated for demolition, aiding the ship recycling industry.

Expanded Vessel Definitions

The bill broadens the definition of ‘vessels’. It includes various crafts like submersibles and mobile offshore units. This aims to provide comprehensive regulatory oversight and improve safety standards across all vessel types.

Marine Pollution Initiatives

To combat marine pollution, the government has launched initiatives to lower sulphur content in marine fuels. The new legislation incorporates international conventions aimed at preventing pollution, aligning India with global standards.

Provisions for Seafarers

The proposed bill extends welfare measures to Indian seafarers employed on foreign vessels. It aims to improve working conditions and safety standards in line with the Maritime Labour Convention.

Maritime Training Regulation

With the rise of private maritime training institutes, the bill introduces legal frameworks to regulate these institutions. This aims to ensure quality education and eliminate fraudulent practices in maritime training.

Focus on Coastal Shipping

The Coastal Shipping Bill differentiates between technical regulations and commercial operations in coastal waters. It aims to enhance coastal shipping through the Sagarmala programme, promoting infrastructure development and improved connectivity.

Conclusion

The proposed reforms in India’s shipping sector are designed to enhance safety, promote investment, and ensure sustainable practices. These legislative changes are crucial for unlocking the potential of India’s maritime industry.

Questions for UPSC:

  1. Examine the significance of the Merchant Shipping Bill, 2024 in modernising India’s maritime framework.
  2. Discuss the impact of international conventions on India’s maritime pollution regulations.
  3. What are the challenges faced by the ship recycling industry in India? How does the Merchant Shipping Bill address these challenges?
  4. Critically discuss the role of private sector participation in maritime training and its implications for quality assurance.

Answer Hints:

1. Examine the significance of the Merchant Shipping Bill, 2024 in modernising India’s maritime framework.
  1. Repeals outdated laws (Merchant Shipping Act, 1958 and Coasting Vessels Act, 1838) to address contemporary needs.
  2. Reduces vessel ownership requirements to attract foreign investment while ensuring majority Indian ownership.
  3. Expands regulatory oversight to include a wider range of vessels, enhancing safety and operational standards.
  4. Incorporates international maritime conventions, aligning India’s regulations with global standards.
  5. Facilitates ease of doing business by transitioning maritime administration from mere regulation to facilitation.
2. Discuss the impact of international conventions on India’s maritime pollution regulations.
  1. International conventions like MARPOL set global standards for pollution prevention in shipping.
  2. The new Bill fully incorporates these conventions, enhancing legal enforcement against marine pollution.
  3. Reduces sulphur content in marine fuel, aligning with international environmental standards.
  4. Launches initiatives like ‘Swachh Sagar’ for proper waste disposal at ports, promoting sustainable practices.
  5. Strengthens India’s commitment to protecting the maritime environment, encouraging global maritime cooperation.
3. What are the challenges faced by the ship recycling industry in India? How does the Merchant Shipping Bill address these challenges?
  1. Challenges include difficulty in registering vessels for demolition due to their non-seaworthy status.
  2. Outdated regulations hinder operational efficiency and safety in the ship recycling sector.
  3. The Bill introduces provisions for temporary registration of vessels designated for demolition.
  4. This measure supports the ship recycling industry by facilitating legal compliance and operational continuity.
  5. Enhances the growth of ship recycling hubs like Alang, vital for India’s maritime economy.
4. Critically discuss the role of private sector participation in maritime training and its implications for quality assurance.
  1. Opening maritime training to the private sector has led to the establishment of over 160 training institutes.
  2. Lack of a legal framework has resulted in unauthorized institutes operating without proper oversight.
  3. The Bill proposes regulations to ensure standardised, high-quality maritime education across all institutions.
  4. Regulatory measures aim to eliminate fraudulent practices that exploit aspiring maritime professionals.
  5. Quality assurance is crucial for maintaining safety and competency in the maritime workforce, impacting global competitiveness.

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