What Is India’s Policy On Coastal Shipping?

India’s coastal shipping policy aims to develop and promote the movement of cargo and passengers along its vast coastline to reduce road and rail congestion, lower transportation costs, and support economic growth. Coastal shipping offers a greener alternative by reducing carbon footprint compared to land transport and is a key component of the government’s broader maritime vision.

India’s Policy on Coastal Shipping

1. Promotion of Coastal Shipping

The policy encourages shifting cargo movement from roads and railways to coastal and inland waterways to improve logistics efficiency and reduce costs.

2. Sagarmala Initiative

Launched by the Government of India, the Sagarmala Project focuses on port modernization, infrastructure development, and improving coastal connectivity to boost coastal shipping.

3. Cabotage Laws and Relaxation

India’s Cabotage Laws restrict the carriage of goods between Indian ports to Indian-flagged vessels. However, certain relaxations allow foreign vessels to promote coastal shipping and increase competition.

4. Regulatory Framework and Safety

The Directorate General of Shipping regulates vessel safety, crew certification, and compliance with maritime safety standards for coastal vessels.

5. Environmental Sustainability

The policy emphasizes reducing emissions and environmental impact by encouraging cleaner fuel use and efficient shipping practices.

6. Incentives and Subsidies

Government schemes provide financial incentives and subsidies for coastal shipping operators to encourage fleet expansion and infrastructure investments.

7. Integration with Multimodal Transport

Promotes seamless integration of coastal shipping with rail and road networks to enhance overall supply chain efficiency.

Example

Scenario:
A company wishes to transport bulk cargo from Chennai port to Kochi port by sea rather than road.

Application of Policy:

• Use of Indian-flagged coastal vessels in line with cabotage regulations.
• Benefit from port infrastructure upgraded under the Sagarmala project.
• Reduced transportation costs and lower environmental footprint.
• Compliance with DG Shipping’s safety and regulatory norms.
• Access to government subsidies supporting coastal shipping operations.

This policy supports cost-effective and sustainable cargo movement along India’s coast.