Lok Sabha set to debate Merchant Shipping Bill, 2024 as Monsoon Session enters day four

As the Monsoon Session of Parliament enters its fourth day, the Lok Sabha is scheduled to reconvene at 2 pm on Thursday to take up significant legislative matters, including the much-anticipated Merchant Shipping Bill, 2024.

Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, will move the Bill for consideration and passage. The proposed legislation seeks to revamp and modernise India’s maritime framework by consolidating and amending outdated laws governing merchant shipping.

The Merchant Shipping Bill, 2024 aims to align Indian maritime laws with international conventions and treaties, while simultaneously boosting the country’s shipping industry, ensuring seafarer welfare, and enhancing coastal security.

A Paradigm Shift in Maritime Governance
The Bill is designed to replace two archaic laws — the Merchant Shipping Act, 1958 and the Coasting Vessels Act, 1838 — which no longer adequately address the complexities of modern maritime operations. Currently, nearly 50% of Indian-flagged offshore vessels remain outside regulatory oversight, and there exists no formal framework for regulating private maritime training institutes.

Moreover, existing laws limit welfare measures only to seafarers employed on Indian-flagged ships, ignoring the reality that many Indian seafarers serve aboard foreign vessels. The Bill also fills gaps in the implementation of key international maritime conventions and eliminates rigid, outdated licensing norms that hinder the growth of the shipping sector.

Key Provisions of the Merchant Shipping Bill, 2024
Simplified Vessel Registration: The Bill reduces the Indian ownership requirement from 100% to 51%, opening up opportunities for NRIs, OCIs, LLPs, and even foreign investors to participate while maintaining Indian majority control. It introduces provisions for bareboat charter-cum-demise registrations and temporary registrations for vessels slated for demolition—vital for the ship-recycling industry.

Expanded Definition of “Vessel”: For the first time, the Bill brings smaller, non-mechanised, and offshore crafts under regulatory coverage, including submersibles, amphibious crafts, hydrofoils, MODUs, drones, and pleasure crafts. This is crucial for India's growing offshore sector, active since the 1974 launch of Sagar Samrat.

Strengthened Coastal Security: In the wake of security lapses highlighted during the 26/11 Mumbai attacks, the Bill empowers authorities to issue operational directives to all vessel types, improving coastal surveillance and national security mechanisms.

Boosting Ease of Doing Business: By cutting through regulatory red tape, easing ownership norms, and updating maritime training protocols, the Bill positions India as a more attractive destination for shipping investments and offshore operations.

With the Merchant Shipping Bill, 2024, the government envisions a forward-looking maritime regime that fosters competitiveness, innovation, and adherence to global standards in one of the most strategic sectors of India's economy.