Parliament passes Coastal Shipping Bill to tap India's maritime trade potential

New Delhi, Aug 7: The Coastal Shipping Bill, 2025 — aimed at promoting cargo movement along India’s coastline — was passed by Parliament on Thursday, following its approval by the Rajya Sabha.

Earlier cleared by the Lok Sabha on April 3, the bill seeks to harness the full potential of the country’s extensive and strategically significant coastline by establishing a dedicated legal framework for coastal trade.

The legislation was passed in the Rajya Sabha through a voice vote, even as Opposition members staged protests over the Special Intensive Revision (SIR) of electoral rolls in Bihar.

Introducing the bill for passage, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the legislation would ease compliance requirements for Indian vessels, in keeping with the government’s “ease of doing business” agenda, while also strengthening the country’s supply chain security.

"It will unlock the full potential of India's coastline... To support the goal of growing India's coastal cargo share to 230 million tonne by 2030 we need a framework that minimises regulations while maximising facilitation of growth opportunity in coastal tracks," Sonowal said.

He said presently, regulation and licensing of coastal shipping was governed under the Merchant Shipping Act, 1958.

"This bill provides a holistic, forward looking and progressive framework suited to today's commercial realities in line with globally prevalent practices," the minister said.

A brief debate on the bill also took place amid protests and sloganeering in the House. Golla Baburao (YSRCP), M Thambidurai (AIADMK), Kalpana Saini (BJP), Milind Deora (Shiv Sena), Rambhai H Mokaria (BJP), Masthan Rao Yadav Beedha (TDP), Birendra Prasad Baishya (AGP), and Darshana Singh (BJP) participated in the debate.

While participating in the debate, Thambidurai raised the issue of Tamil fisherfolks, and the Katchatheevu island. DMK MP Tiruchi Siva however raised a point of order and said the AIADMK MP's speech was not related to the bill, and should be expunged.

Siva's point of order came as the Chair had instructed that anything unrelated to the bill would not go on record.

The text of the bill says it aims to consolidate and amend the law relating to regulation of coastal shipping, promote coasting trade and encourage domestic participation, to ensure that India is equipped with a coastal fleet, owned and operated by the citizens of India for its national security and commercial needs.

Foreign vessels can engage in coastal trade only under a licence issued by the Director General of Shipping, with conditions that support Indian shipbuilding and employment for seafarers.

The bill mandates a National Coastal and Inland Shipping Strategic Plan, revised biennially, to improve route planning, forecast traffic, and integrate coastal shipping with inland waterways.

Under the bill, coastal waters mean territorial waters of India, along with adjoining maritime zones.

Territorial waters extend up to 12 nautical miles (about 22 km) from the coast, while adjoining maritime zones extend up to 200 nautical miles (about 370 km)

PTI