{"id":33495,"date":"2024-12-10T18:55:32","date_gmt":"2024-12-10T13:25:32","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=33495"},"modified":"2025-01-06T17:25:52","modified_gmt":"2025-01-06T11:55:52","slug":"merchant-shipping-reforms","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/10-12-2024\/merchant-shipping-reforms","title":{"rendered":"Reforms in Merchant Shipping"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Government is set to introduce the <strong>Merchant Shipping Bill, 2024<\/strong> and <strong><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/04-12-2024\/coastal-shipping-bill-2024\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/04-12-2024\/coastal-shipping-bill-2024\">Coastal Shipping Bill, 2024<\/a><\/strong> to reform and modernize the shipping sector, replacing outdated laws.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Merchant Shipping?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Merchant shipping refers to the <strong>commercial activity of transporting goods, passengers, or cargo<\/strong> via ships across domestic and international waters.<\/li>\n\n\n\n<li>It forms a critical component of global trade and the maritime economy, enabling the movement of essential commodities, energy supplies, and industrial goods.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Outdated Laws:<\/strong> The<strong> Merchant Shipping Act, 1958<\/strong> and <strong>Coasting Vessels Act, 1838<\/strong> are obsolete and fail to meet contemporary needs.<\/li>\n\n\n\n<li><strong>Regulatory Gaps:<\/strong> Offshore vessels (50% of Indian-flagged ships) lack oversight.<\/li>\n\n\n\n<li><strong>Seafarer Welfare:<\/strong> The 1958 Act excludes Indian seafarers on foreign-flagged vessels, despite 85% of <strong>2.8 lakh seafarers <\/strong>working abroad.<\/li>\n\n\n\n<li><strong>Ease of Doing Business:<\/strong> License-era provisions hinder maritime administration from becoming a regulator-cum-facilitator.<\/li>\n\n\n\n<li><strong>International Standards:<\/strong> India\u2019s laws lack enabling provisions for implementing global maritime conventions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Features of the Merchant Shipping Bill 2024<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ease of Registration:<\/strong> Reduces Indian ownership requirement from 100% to <strong>51%<\/strong> to attract foreign investment.\n<ul class=\"wp-block-list\">\n<li>Permits NRIs, OCIs, and LLPs to own and register Indian vessels.<\/li>\n\n\n\n<li>Allows bareboat charter-cum-demise registration, enabling capital-deficient entrepreneurs to acquire ships gradually.<\/li>\n\n\n\n<li>Provides temporary registration for vessels destined for ship recycling hubs (e.g., Alang).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Enlarged Scope of Vessels: <\/strong>Expands the definition of \u2018vessels\u2019 to include Mechanised and non-mechanised crafts: submersibles, hydrofoils, barges, drones, MODUs, MOUs, etc.\n<ul class=\"wp-block-list\">\n<li>Addresses regulatory gaps for offshore vessels like work barges and accommodation barges.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Seafarers\u2019 Welfare: <\/strong>The Bill extends welfare provisions to Indian seafarers working on foreign-flagged ships.\n<ul class=\"wp-block-list\">\n<li>It implements <strong>Maritime Labour Convention (MLC) standards<\/strong> for improved working conditions, safety, and benefits.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Maritime Training:<\/strong> Introduces a legal framework to regulate private maritime training institutes post-liberalisation.<\/li>\n\n\n\n<li><strong>Marine Pollution Control:<\/strong> The new Bill fully incorporates the IMO conventions at preventing and combating marine pollution, aligning India\u2019s maritime regulatory framework with global standards.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Steps taken by India to control marine pollution<\/strong><br>&#8211; <strong>India<\/strong> is required to reduce the sulfur content in marine fuel from 3.5% to less than <strong>0.5%<\/strong> as part of the <strong>International Maritime Organization&#8217;s (IMO) 2020 regulation.<\/strong><br>&#8211; <strong>India banned <\/strong>the use of <strong>single-use plastics<\/strong> on ships in its waters.<br>&#8211; <strong>Swachh Sagar portal<\/strong> has been launched for waste disposal at ports.<br><strong>International Efforts<\/strong><br>&#8211; The<strong> International Maritime Organization (IMO)<\/strong> has adopted several conventions aimed at preventing and combating marine pollution, such as&nbsp;<br>1. The Civil Liability Convention (CLC),&nbsp;<br>2. The Convention on Limitation of Liability on Maritime Claims (LLMC),&nbsp;<br>3. The Bunker Convention,&nbsp;<br>4. The International Convention for the Prevention of Pollution from Ships (MARPOL), and&nbsp;<br>5. The Wreck Removal Convention.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Coastal Shipping Bill 2024<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Distinction of Regulation:<\/strong> Separates technical ship regulation from commercial coastal operations.<\/li>\n\n\n\n<li><strong>Key Provisions of the Bill;<\/strong>\n<ul class=\"wp-block-list\">\n<li>Licensing and permissions for coastal operations.<\/li>\n\n\n\n<li>Integration of inland and coastal shipping.<\/li>\n\n\n\n<li>Development of a coastal plan involving the Union and States.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It aligns with the <strong>Sagarmala program,<\/strong> which emphasises the promotion of coastal shipping through initiatives like;\n<ul class=\"wp-block-list\">\n<li>Dedicated berths for coastal vessels and<\/li>\n\n\n\n<li>Enhanced hinterland connectivity for coastal cargo movement.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of the Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Boosting Investment:<\/strong> Attracts foreign investors by easing vessel registration rules.<\/li>\n\n\n\n<li><strong>Regulatory Oversight:<\/strong> Uniform regulation of mechanised and non-mechanised vessels, especially in the offshore sector.<\/li>\n\n\n\n<li><strong>Enhancing Coastal Security: <\/strong>Stricter vessel regulation strengthens maritime safety post-26\/11.<\/li>\n\n\n\n<li><strong>Environmental Sustainability:<\/strong> Aligns with international conventions to combat marine pollution and promote sustainable practices.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strengthen Infrastructure:<\/strong> Develop ports, hinterland connectivity, and coastal facilities under Sagarmala.<\/li>\n\n\n\n<li><strong>Skilled Workforce: <\/strong>Strengthen maritime training and seafarers\u2019 welfare mechanisms.<\/li>\n\n\n\n<li><strong>Environmental Responsibility: <\/strong>Promote clean fuel, reduce marine waste, and enforce pollution control measures.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/on-reforms-in-merchant-shipping-explained\/article68964962.ece#:~:text=Some%20of%20the%20measures%20include,generated%20waste\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government is set to introduce the Merchant Shipping Bill, 2024 and Coastal Shipping Bill, 2024 to reform and modernize the shipping sector, replacing outdated laws.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-33495","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=33495"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33495\/revisions"}],"predecessor-version":[{"id":33712,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33495\/revisions\/33712"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=33495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=33495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=33495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}