INDIA Trends and Developments Contributed by: Gautam Bhatikar, Deeksha Dev Singh and Isha Patil, Phoenix Legal
In a significant shift towards inclusivity, the Bill relaxes vessel ownership criteria to allow partial ownership by Indian entities, and extends own - ership rights to overseas citizens of India (OCIs). This change, combined with provisions for reg - istering foreign-chartered vessels and those intended for recycling, reflects a more flexible approach to vessel registration and ownership. The Bill strengthens environmental protection by mandating pollution prevention certificates for all vessels, regardless of tonnage, and intro - duces civil penalties for discharge of harmful pollutants. It also modernises seafarer welfare by expanding access to social security benefits and strengthening regulation of maritime train - ing institutes. The legislation revises the penalty framework, decriminalising certain technical violations while maintaining strict enforcement against serious offences through updated fines and imprisonment terms. A notable administrative change is the empow - erment of the Director-General of Marine Admin - istration (renamed from Director-General of Shipping) with expanded authority over maritime education and training. The Bill also provides for the creation of a dedicated body to regulate ves - sel and port security, enhancing India’s maritime safety framework. The Coastal Shipping Bill, 2024 The Coastal Shipping Bill, 2024 marks a signifi - cant modernisation of India’s maritime regula - tions, replacing the coastal shipping provisions of the Merchant Shipping Act, 1958. The Bill extends its jurisdiction across India’s territorial waters up to 12 nautical miles from the coast and into adjoining maritime zones up to 200 nau - tical miles offshore, creating a comprehensive framework for coastal shipping operations.
This new legislation broadens the scope of coastal trade beyond just passenger and cargo transportation to include services such as explo - ration and research activities. A notable change is the streamlined licensing system – vessels wholly owned by Indian entities no longer require licences for coastal trade, while vessels owned by non-resident Indians and OCIs need licences only for specific operations between Indian and international ports. The Bill strengthens enforcement through updated penalties, with fines now reaching up to INR15 lakh or four times the gains from unli - censed voyages. It also mandates the creation of a National Coastal and Inland Shipping Stra - tegic Plan within two years, ensuring a co-ordi - nated approach to developing India’s maritime infrastructure. This forward-looking legislation creates better integration between coastal and inland waterways, positioning India’s maritime sector for sustainable growth while maintaining robust regulatory oversight. The Carriage of Goods by Sea Bill, 2024 The Carriage of Goods by Sea Bill, 2024, intro - duced in Lok Sabha in August 2024, represents a modernisation of India’s maritime cargo regu - lations while maintaining continuity with estab - lished international standards. The Bill succeeds the Indian Carriage of Goods by Sea Act, 1925, preserving its fundamental principles while intro - ducing mechanisms for adapting to contempo - rary shipping practices. The legislation governs the transportation of goods by sea, both between Indian ports and in international trade, establishing clear guidelines for the responsibilities and liabilities of carriers and shippers. A key focus of the Bill is its treat - ment of bills of lading, which serve as essential
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