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.
