India’s recent maritime reforms need course correction , Pg6

Key Highlights:

• The Indian Ports Bill, 2025 was passed in the Rajya Sabha on August 18, aiming to replace the 1908 Act.
• The new maritime legislative package includes the Coastal Shipping Act, 2025, the Carriage of Goods by Sea Bill, 2025, and the Merchant Shipping Act, 2025.
• Critics argue the Ports Act, 2025 centralizes power, potentially undermining the fiscal autonomy of coastal states.
• The Merchant Shipping Act, 2025 allows "partly" Indian ownership of vessels, including by Overseas Citizens of India and foreign entities.

Detailed Insights:

• India's existing maritime regulations are outdated, hindering trade expansion and foreign investment.
• The Maritime State Development Council, chaired by the Union Minister of Ports, is criticized for potentially subordinating state port development to central plans like Sagarmala and PM Gati Shakti.
• Clause 17 of the Ports Bill restricts civil courts from hearing port-related disputes, raising concerns about impartial dispute resolution.
• The Merchant Shipping Act, 2025 introduces Bareboat Charter-Cum-Demise (BBCD) registration, which could lead to foreign entities retaining control over Indian-flagged vessels.
• The Coastal Shipping Act grants the Director General of Shipping broad discretion to license foreign vessels, potentially impacting small operators in the fishing industry.

Key Concepts Involved:

• Cabotage: Laws restricting foreign vessels from engaging in domestic coastal trade.
• Sagarmala Project: An initiative to enhance port-led development in India.
• PM Gati Shakti: A national master plan for multi-modal connectivity.