Reforms in Merchant Shipping

Source: The post Reforms in Merchant Shipping has been created, based on the article “On reforms in merchant shipping” published in “The Hindu” on 10th December 2024.

UPSC Syllabus Topic: GS-2 Governance

Context: The article provides an in-depth analysis of the proposed reforms in India’s merchant shipping sector through the introduction of two significant bills—the Merchant Shipping Bill, 2024, and the Coastal Shipping Bill, 2024. Reforms in Merchant Shipping.

Why is a new Merchant Shipping Bill needed?

1. These Acts are outdated and fail to address contemporary needs, especially for offshore vessels, which form 50% of Indian-flagged ships.
2. Regulatory gaps, restrictive provisions, and the lack of a framework for private maritime training necessitate modernisation.

What are the shortcomings of the current laws?

1. Welfare provisions only apply to Indian-flagged ships, while 85% of Indian seafarers work on foreign-flagged vessels.
2. Lack of enabling provisions to implement international conventions.
3. Outdated, license-era provisions hinder modernisation and ease of doing business.

How does the Bill address vessel registration?

1. Reduces Indian ownership threshold from 100% to 51%, allowing NRIs, OCIs, and foreign entities to register Indian vessels.
2. Allows Limited Liability Partnerships (LLPs) to own ships.
3. Introduces bareboat charter-cum-demise, enabling entrepreneurs to own vessels after charter periods.
4. Temporary registration for vessels destined for recycling, benefiting ship recycling hubs like Alang.

How does the Bill expand vessel regulation?

1. Includes non-mechanised vessels and crafts such as submersibles, hydrofoils, amphibious crafts, Mobile Offshore Units (MOUs), and drones under its ambit.
2. Strengthens coastal security by empowering authorities to regulate all vessel types, addressing gaps exposed during the 26/11 Mumbai attacks.

How does the Bill tackle marine pollution?

1. Incorporates international conventions like MARPOL, the Bunker Convention, and the Civil Liability Convention.
2. Aligns with IMO standards, reducing sulphur content in marine fuel and banning single-use plastics.
3. Launches the ‘Swachh Sagar’ portal for proper ship-waste disposal.

 What are the new provisions for seafarers?

1. Extends welfare measures to Indian seafarers on foreign-flagged ships.
2. Aligns working conditions with the Maritime Labour Convention (MLC), ensuring better safety, benefits, and support.

How does the Bill address the gaps in maritime training regulation??

1. Over 160 private institutes operate without a legal framework, leading to unauthorised operations and fraudulent practices. Previously, training was government-controlled, with no need for regulation.

2. The Bill introduces legal provisions to regulate maritime training institutes. It also eliminates unauthorised institutes and ensures high-quality education nationwide.

What is the focus of the Coastal Shipping Bill?

1. Separates technical ship regulations from commercial coastal operations.
2. Covers licensing, coastal plans, and integration of inland and coastal shipping.
3. Supports the Sagarmala program by promoting coastal shipping infrastructure and hinterland connectivity.

What potential benefits do the new Bills offer?

1. Modernises India’s maritime framework in line with global standards.
2. Enhances coastal security, maritime safety, and ease of business.
3. Strengthens infrastructure, promotes environmental sustainability, and boosts seafarer welfare.
4. Unlocks the growth potential of India’s maritime sector, fostering bipartisan support.