Lok Sabha Passes Bill to Modernize Merchant Shipping Laws
The Lok Sabha has passed the Merchant Shipping Bill, 2024, which aims to repeal and replace the nearly 70-year-old Merchant Shipping Act of 1958. The new legislation expands the eligibility criteria for vessel ownership in India and introduces updated provisions for investigating marine casualties. It also empowers the central government to detain vessels that are not legally entitled to fly a state's flag. The bill is intended to create a modern, futuristic regulatory framework for India's growing maritime economy.
Unpacked:
The 1958 Act was considered bulky, fragmented, and outdated, with 561 sections that failed to address modern maritime challenges or fully implement India's obligations under international maritime conventions. The new bill aims to streamline regulations, align with global best practices, and better support the growth and modernization of India's shipping sector.
The new bill expands eligibility for owning Indian vessels to include not only Indian citizens and companies but also partly owned vessels and those owned by Overseas Citizens of India (OCIs). The specific thresholds for ownership will be set by the central government, and vessels wholly owned by OCIs are not required to register in India.
The bill is designed to align with several key International Maritime Organisation (IMO) conventions and other international maritime treaties to which India is a party, ensuring India’s shipping laws comply with global standards for safety, environmental protection, and maritime governance.
The central government is empowered to detain vessels that are not legally entitled to fly a state’s flag, including stateless vessels, within Indian waters. This authority aims to enhance maritime security, prevent illegal activities, and ensure compliance with Indian and international maritime laws.