The Coastal Shipping Bill, 2024 was introduced in the Lok Sabha recently. This Bill aims to enhance coastal trade in India. It encourages the use of Indian-flagged vessels for national security and commercial purposes. The introduction of the Bill comes amidst political protests regarding recent events in Uttar Pradesh and issues related to the Adani Group.
Objectives of the Bill
The Bill seeks to prohibit trade in coastal waters without a licence for vessels that are not Indian. It allows inland vessels to participate in coastal trading under specific conditions. This aims to boost the participation of Indian vessels in coastal trade.
Licensing and Regulation
The Bill empowers the Director-General to issue licences based on various factors. These include the citizenship of the crew and the vessel’s construction requirements. This is expected to create job opportunities for Indian seafarers and promote domestic shipbuilding.
National Database and Strategic Planning
A National Database of coastal shipping will be established. This will ensure transparency in procedures and facilitate information sharing. The Bill also mandates the preparation of a National Coastal and Inland Shipping Strategic Plan. This plan will focus on the development and promotion of coastal shipping in India.
Coastal Shipping Potential
India has a vast coastline of approximately 7,500 km. This geographical advantage positions India favourably in global shipping routes. Coastal shipping is recognised as a more cost-effective mode of transportation compared to others.
Current Regulatory Framework
The regulation of coastal shipping in India is inconsistent. Non-mechanised vessels are governed by the Coasting Vessel Act of 1838. This Act only allows for the registration of such vessels. Mechanised vessels fall under the Merchant Shipping Act of 1958. This disparity marks the need for a comprehensive regulatory framework.
Political Context
The introduction of the Bill occurred in a politically charged environment. Opposition members protested during the proceedings. They voiced their concerns about the state of order in the House. Despite the protests, the Bill was passed through a voice vote.
Future Measures
The Coastal Shipping Bill is one of five new measures planned for introduction during the Winter Session of Parliament. This reflects the government’s commitment to enhancing maritime trade and improving the regulatory framework for coastal shipping.
Questions for UPSC:
- Discuss the significance of coastal shipping in enhancing India’s maritime trade capabilities.
- Critically examine the existing regulatory framework governing coastal shipping in India.
- With suitable examples, discuss the potential economic benefits of the Coastal Shipping Bill, 2024.
- Explain the role of Indian-flagged vessels in ensuring national security and promoting economic growth.
Answer Hints:
1. Discuss the significance of coastal shipping in enhancing India’s maritime trade capabilities.
- India’s coastline spans approximately 7,500 km, providing access to major global shipping routes.
- Coastal shipping is more cost-effective compared to road and rail transport, reducing logistics costs.
- It can alleviate congestion in land transport networks, improving overall trade efficiency.
- Enhanced coastal shipping can support local economies and create jobs in coastal regions.
- It promotes sustainable transportation, reducing carbon emissions associated with overland transport.
2. Critically examine the existing regulatory framework governing coastal shipping in India.
- The Coasting Vessel Act, 1838 governs non-mechanised vessels, focusing only on registration.
- Mechanised vessels are regulated under the Merchant Shipping Act, 1958, leading to regulatory inconsistencies.
- Lack of uniformity affects compliance and operational efficiency in the coastal shipping sector.
- The proposed Coastal Shipping Bill, 2024 aims to address these regulatory gaps and streamline processes.
- Establishing a National Database will enhance transparency and improve regulatory oversight.
3. With suitable examples, discuss the potential economic benefits of the Coastal Shipping Bill, 2024.
- Encouraging Indian-flagged vessels can boost domestic shipbuilding, creating jobs and enhancing technology.
- By prohibiting foreign vessels, the Bill aims to retain revenue within the Indian economy.
- Increased coastal trade can stimulate local economies, particularly in coastal states like Gujarat and Kerala.
- Examples from countries like Norway show that robust coastal shipping can enhance overall maritime trade.
- Job creation for Indian seafarers will contribute to skill development and economic stability.
4. Explain the role of Indian-flagged vessels in ensuring national security and promoting economic growth.
- Indian-flagged vessels help secure maritime interests and sovereignty over territorial waters.
- They reduce dependency on foreign vessels, enhancing strategic autonomy in maritime operations.
- Boosting the Indian maritime sector contributes to national economic growth by creating jobs and infrastructure.
- Indian vessels can be more easily monitored and regulated, improving safety and compliance with laws.
- Strengthening the domestic fleet supports disaster response and humanitarian missions along the coastline.
