Why in News?
- The two bills – the Merchant Shipping Bill, 2024 and the Coastal Shipping Bill, 2024 are being floated by the Government with the aim of introducing reforms and bringing the desired sea changes that may suit the shipping industry.
Why a new bill?
- The Merchant Shipping Act, 1958; Coast Vessels Act, 1838-the two self-centered Acts made by the British Colony which the new bills want to annul-are outdated and no longer comprehend the modern-day needs of merchant marines.
- Registration: Under the existing law the vessels are allowed to register only for 100% Indian owned entities. The Bill aims for greater amendment to attract foreign investment.
- Almost 50% of Indian flagged vessels are in this segment, and there are significant regulatory gaps especially for the offshore sector.
- Maritime training has been liberalized in respect of making private sector participation possible, and it must be noted that until now no legislative framework exists in the Act so that their operations can be controlled efficiently.
- The welfare provisions themselves in the Merchant Shipping Act do exist only for Indian flagged ships, but 85% of Indian seafarers work on foreign-flagged vessels.
- Ships cover broadened: The existing Act deals with mechanized ships of a particular size and does not apply to smaller mechanized vessels and all non-mechanized vessels.
- Enhancing coastal security: The new Bill will aid enhance coastal security as the authorities would be empowered to issue orders to all types of vessels.
Current Acts demerit:
- The Current Act lacks any enabling provision for implementing international conventions that have been signed or will be signed by India.
- Old license-era provisions act against modernization and prevent maritime administration from undergoing the transition into a regulator-cum-facilitator model.
Salient Features of the Merchant Shipping Bill:
- Expanded vessel definition. The present Act governs only large mechanised ships while small and non-mechanised vessels have remained unregulated, creating some operational and safety gaps in the offshore sector.
- The Sagar Samrat was actually the first merchant vessel commissioned for purely exploratory offshore drilling-related to Bombay High’s drilling of its first well way back in 1974. It’s been a long time since the offshore industry was filled with vessels spanning highly mechanized to completely non-mechanized vessels.
- The new Bill addresses this by broadening the definition of ‘vessels’ to include a wide range”
