Union Shipping minister Sarbananda Sonowal introduced the Merchant Shipping Bill, 2024 in Lok Sabha. 

It aims to modernise the regulatory framework governing merchant shipping in the country, promote growth and enhance compliance with international standards.

Why govt brings in new Bill?

• The Merchant Shipping Act, 1958 was enacted to foster the development and ensure the efficient maintenance of an Indian mercantile marine in a manner best suited to serve the national interests and establish a National Shipping Board and to provide for the registration, certification, safety and security of Indian ships. 

• The 1958 Act contains 561 sections, as a result of various amendments carried out in the Act from time to time.

• The merchant shipping industry has experienced significant changes internationally in recent years, presenting various challenges to Indian shipping. 

• To address these challenges and promote ease of doing business, reforms in the 1958 Act became essential. 

These reforms include:

i) To reduce compliance burden while improving operational efficiency.

ii) Enhance the quality and quantity of tonnage under the Indian flag to strengthen India’s presence in the global shipping market.

iii) Improve the rights, privileges, and protections for seafarers, ensuring their welfare and dignity. 

iv) Ensure the safety and security of vessels and life at sea by adhering to safety protocols.

v) Prevent marine pollution and safeguard the marine environment.

vi) Provide for maritime liabilities and compensation mechanisms to address contingencies effectively.

vii) Align with global best practices by adopting India’s obligations under international conventions comprehensively.

viii) Boost the sector’s attractiveness as an investment destination by creating a conducive regulatory environment.

ix) Promoting transparency and accountability in the shipping industry. 

• These reforms aim to modernise the sector, enhance its competitiveness, and align it with global standards to meet evolving international demands.

• The new Bill seeks to repeal the Merchant Shipping Act, 1958 and provides for contemporaneous, futuristic and dynamic legislation to meet the requirements of India as an emerging economy.

Key provisions of the Bill:

• The proposed legislation would provide for maritime liability and compensation in claims arising out of collision of vessels and accidents at sea leading to damage or loss of vessel, cargo or property.

• It empowers the central government to take charge and detain vessels within India or in coastal waters as a vessel without nationality, if such vessel is not legally entitled to fly the flag of a state or has lost such right.

• It provides for maritime liability and compensation in claims arising out of collision of vessels and accidents at sea leading to damage or loss of vessel, cargo or property and constitution of limitation fund.

• It provides for marine incident and emergency response in order to provide time-effective and efficient emergency responses to a marine incident and provides for “investigation and inquiries on marine casualties”.

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