- 01-Aug-2025
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India's maritime sector is undergoing significant reforms aimed at enhancing its global competitiveness, environmental sustainability, and operational efficiency. The introduction of the Merchant Shipping Bill, 2024, and the Coastal Shipping Bill, 2024, marks a transformative shift in the nation's maritime legal framework. These reforms address long-standing challenges and align India's maritime policies with international standards.
Expanded Vessel Ownership: The Bill relaxes the 100% Indian ownership requirement, allowing vessels to be owned by Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Limited Liability Partnerships (LLPs), with a minimum of 51% Indian ownership. This change aims to attract foreign investment and increase the tonnage under the Indian flag .
Broader Definition of Vessels: The Bill includes various types of vessels such as submersibles, semi-submersibles, amphibious crafts, and offshore drilling units, ensuring comprehensive regulation and safety standards .
Enhanced Seafarer Welfare: Provisions for repatriation of abandoned seafarers have been strengthened, and there is a clear definition of what constitutes an abandoned vessel. The Bill also introduces a statutory framework for regulating maritime emergency responses .
Environmental Protection: The Bill mandates pollution prevention certificates for all vessels, regardless of tonnage, and introduces civil penalties for the discharge of harmful pollutants. It also empowers the Centre to undertake salvage operations and set up a fund for compensating oil pollution damage beyond standard insurance coverage .
Simplified Licensing: Vessels wholly owned by Indian entities no longer require licenses for coastal trade. Vessels owned by NRIs and OCIs need licenses only for specific operations between Indian and international ports .
Integration with Inland Waterways: The Bill aims to integrate coastal maritime transport with inland waterways, enabling efficient water-based transportation across India .
Strategic Planning: The Bill mandates the development of a National Coastal and Inland Shipping Strategic Plan and a comprehensive shipping database, ensuring a data-driven approach to the sector's growth .
Establishment of Fund: The government plans to set up a Maritime Development Fund with a corpus of around Rs 25,000 crore to provide long-term financing for maritime initiatives, including shipbuilding and repair activities .
Promotion of Shipbuilding Clusters: Efforts will be made to promote shipbuilding clusters to increase the range, categories, and capacity of ships, including additional infrastructure facilities, skilling, and technology to develop the entire ecosystem .
Elevated Security Levels: The Directorate General of Shipping has raised maritime security to MARSEC Level-2, indicating a heightened security status for all Indian ports, terminals, shipyards, and vessels flying the Indian flag, in response to growing concerns about potential threats .
Consumer Rights: Passengers can lodge complaints with port authorities or the Directorate General of Shipping in case of negligence, delayed services, or unsafe conditions.
Maritime Claims Tribunal: For disputes involving shipping services, passengers can approach maritime claims tribunals or civil courts.
Environmental Complaints: Illegal discharge or marine pollution by vessels can be reported to the Ministry of Environment or the Indian Coast Guard.
Suppose an Indian family books a luxury cruise from Mumbai to the Maldives. While at sea, there is a fire in the engine room due to a technical fault, but the crew handles it swiftly and no one is harmed. Later, the family learns the ship had passed inspection under Port State Control and had valid SOLAS certificates.
Steps authorities and consumers take in such a case:
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