- 31-Jul-2025
- Elder & Estate Planning law
The proposed Indian Shipping Bill aims to overhaul and modernize India's maritime laws to align with global standards and address contemporary challenges in the shipping industry. This legislative reform seeks to promote ease of doing business, enhance maritime safety, protect the environment, and improve the welfare of seafarers.
The Bill expands the eligibility criteria for owning Indian-flagged vessels to include Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), limited liability partnerships, and foreign entities with majority Indian ownership. This move is expected to reduce compliance burdens and increase the quality and quantity of tonnage under the Indian flag .
The Bill strengthens provisions for the repatriation of abandoned seafarers and ensures the replacement of crew on abandoned vessels. It also aligns with the International Labour Organization’s Maritime Labour Convention, 2006, to improve working conditions and safety standards for seafarers .
The Bill mandates stricter controls on maritime emissions and pollution, including the reduction of sulfur content in marine fuel to less than 0.5% and a ban on single-use plastics on Indian ships. It also empowers the central government to establish a fund for compensating damages from oil pollution beyond standard insurance coverage .
For the first time, the Bill introduces a statutory framework for regulating maritime emergency responses to incidents such as oil spills and shipwrecks. It empowers the central government to undertake necessary salvage operations and take action against vessels deemed unsafe or hazardous to life at sea and the marine environment .
The Bill aims to boost the coastal shipping sector by removing the requirement for trading licenses for Indian-flagged vessels engaged in coastal trade. It also supports the 'Sagarmala' program, which promotes coastal shipping through dedicated berths and better hinterland connectivity for coastal cargo .
The Bill emphasizes the adoption of digital technologies in ship registration, compliance, and certification processes, enhancing transparency and efficiency across the maritime sector .
A company wishes to register a foreign-built vessel under the Indian flag for coastal shipping operations.
The company ensures that the ownership structure complies with the new provisions, allowing for foreign entities with majority Indian ownership to register vessels under the Indian flag.
The company submits the necessary documentation through the streamlined digital registration system introduced by the Bill, facilitating remote registration without the need to visit Indian ports.
The company ensures that the vessel adheres to the environmental regulations stipulated in the Bill, including the reduction of sulfur content in marine fuel and compliance with waste disposal protocols.
The company aligns its employment practices with the welfare provisions of the Bill, ensuring that seafarers are provided with adequate working conditions and are protected under the Maritime Labour Convention, 2006.
The company complies with the safety and emergency response protocols outlined in the Bill, ensuring that the vessel is subject to regular inspections and is prepared for potential maritime incidents.
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