Union Shipping Minister says Coastal Shipping Bill will unlock India’s maritime potential

Union Shipping Minister Sarbananda Sonowal on Tuesday (April 1, 2025) moved the Coastal Shipping Bill, 2024 and stated that the legislation will unlock India’s maritime potential and provide a sustainable alternative to road and rail transport.

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Mr. Sonowal, who holds the ports, shipping and waterways portfolio, said that with the logistics sector seeking low-cost, reliable and sustainable alternatives, the Bill will give a much-needed push to the maritime industry through a dedicated legal framework for coastal shipping.

“This Bill is a significant reform initiative that can unlock the full potential of India’s vast and strategic maritime sector,” the Minister said.

The Coastal Shipping Bill introduced in the Lok Sabha on December 2, 2024, seeks to regulate vessels engaged in trade within the Indian coastal waters.

Opposition’s concerns

Opposition MPs, however, raised concerns about the Bill’s impact on fishermen and the role of States in coastal shipping governance.

Congress MP Manickam Tagore accused the government of overlooking the struggles of fishermen, particularly in Tamil Nadu and Gujarat.

“Fishermen’s fight is India’s fight. In Tamil Nadu, 843 fishermen have been killed or imprisoned by Sri Lanka over the years. In Gujarat, Pakistan is a looming threat, Odisha faces cyclones, and in Andhra Pradesh, pollution has affected over 70,000 households,” Mr. Tagore said, initiating the debate on the Bill.

He demanded the inclusion of weather alerts, life vests for every fisherman, and certification for their boats under the proposed law, while also calling for the removal of the 30% tax on coastal shipping.

Opposing the Bill strongly, DMK MP D.M. Kathir Anand said it undermined State autonomy. “Why should Tamil Nadu beg for what other States are handed? This Bill is a sham. The National Coastal and Inland Shipping Strategy Plan is a slap on the face of States’ autonomy. Every two years, the Centre will dictate our maritime fate, ignoring Tamil Nadu’s specific needs,” Mr. Anand said.

He also warned that increased shipping activity could lead to oil spills and environmental degradation, affecting the livelihoods of fishermen.

Emphasising the need to balance regulations with investment, Trinamool Congress MP Sougata Roy said: “We must not allow regulations to hamper investment. This Bill introduces uniformity and transparency. However, we should mandate that at least 50% of domestic cargo be transported by Indian vessels and create an independent body to oversee shipping matters.”

The Trinamool MP also called for a minimum employment quota for Indian seafarers in Indian shipping companies.