{"id":356338,"date":"2025-08-12T10:00:10","date_gmt":"2025-08-12T04:30:10","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=356338"},"modified":"2025-08-11T19:50:56","modified_gmt":"2025-08-11T14:20:56","slug":"coastal-shipping-act-partially-repealed-merchant-shipping-act","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/12\/coastal-shipping-act-partially-repealed-merchant-shipping-act\/","title":{"rendered":"Coastal Shipping Act, 2025 partially repeals Provisions of Merchant Shipping Act, 1958 dealing with Control of Indian Ships and Ships Engaged in Coasting Trade"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 9-8-2025, the <span style=\"font-weight: bold;\">Ministry of Law and Justice<\/span> issued the <span style=\"font-weight: bold;\">Coastal Shipping Act, 2025<\/span> to ensure that India is equipped with a coastal fleet, owned and operated by the citizens of India for its national security and commercial needs.<\/p>\n<h3>Key Points:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p style=\"font-weight: bold;\">Prohibition for Coasting Trade:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Only Indian vessels will be allowed to engage in coastal trade except the vessels that have obtained a license by the Director- General;<\/li>\n<li>Director General can permit a vessel registered under the <span style=\"font-weight: bold;\"><a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-9000891344\" target=\"_blank\" rel=\"noopener\">Inland Vessels Act, 2021<\/a><\/span> to engage in coasting trade by order in writing;<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">License for Coasting Trade:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Applications for license will be made to Director- General;<\/li>\n<li>Before granting the license, the Director- General will consider the following <span style=\"font-weight: bold;\">factors<\/span>:\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 If the applicant had previously held a license;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 If any provisions of the <span style=\"font-weight: bold;\">Coastal Shipping Act, 2025<\/span> have been violated by the applicant before or during the pendency of his applications;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Citizenship of the crew;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Build requirements of the vessel;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Availability of vessels on the route;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Licenses granted to vessels for the same route;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Safety, national and maritime security concerns;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Equipment on board the vessel including communication equipment;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Cost efficiency of transport;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Strategic Plan<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Validity of the certificates of vessel and crew;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 Validity of the certificate of insurance of the vessel.<\/p>\n<\/li>\n<li>The Director General will prescribe the validity of the license, class or category of license.<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: bold;\">Suspension\/ Revocation\/ Modification of license<\/span> can be done by Director- General if:\n<ul style=\"list-style-type: disc;\">\n<li>Person violates any condition of license;<\/li>\n<li>Fails to comply with any requirement under the law;<\/li>\n<li>Fails to comply with directions issued;<\/li>\n<li>Fails to pay any fine or serve a sentence imposed.<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: bold;\">In case, the license ceases to be valid due to expiry of its period or revocation<\/span>, the licensee can<span style=\"font-weight: bold;\">:<\/span>\n<ul style=\"list-style-type: disc;\">\n<li>Return it or cause it to be returned to the Director-General;<\/li>\n<li>Cease to engage in coasting trade.<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">Vessels engaging in coastal trade will have to report to the Director General the following information:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Port\/ ports which it will visit in the course of its voyage;<\/li>\n<li>Goods or passengers carried by vessel and the ports or places where such goods or passengers will be dropped off;<\/li>\n<li>Any offshore area in which it may operate or navigate for the purposes of its voyage.<\/li>\n<\/ul>\n<\/li>\n<li>The Central Government will formulate a <span style=\"font-weight: bold;\">National Coastal and Inland Shipping Strategic Plan<\/span> within 2 years periods from the commencement of this Act, which will be updated every 2 years.<\/li>\n<li>A <span style=\"font-weight: bold;\">National Database of Coastal Shipping<\/span> will be maintained by the Director General in electronic form on a web portal and will be updated every month.<\/li>\n<li>Chapter IV of the <span style=\"font-weight: bold;\">Coastal Shipping Act, 2025<\/span> comprise of licensing of Chartered Vessels other than for Coasting trade.<\/li>\n<li><span style=\"font-weight: bold;\">Judicial Magistrate of First Class<\/span> can pass any sentence provided under the <span style=\"font-weight: bold;\">Coastal Shipping Act, 2025<\/span> on any person convicted of an offence.<\/li>\n<li>\n<p style=\"font-weight: bold;\">Power to exempt:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Director General, with the prior approval of the Central Government, can exempt from the provisions of the <span style=\"font-weight: bold;\">Coastal Shipping Act, 2025<\/span>.<\/li>\n<li>Conditions:\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 any vessel\/ class of vessels engaged in coasting trade; or<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">\u2713 any class of vessels chartered by a citizen of India or non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>The following can<span style=\"font-weight: bold;\"> detain the vessel<\/span> under the instructions of principal officer:\n<ul style=\"list-style-type: disc;\">\n<li>Any commissioned officer of Navy or Coast Guard or Police;<\/li>\n<li>Any Port officer;<\/li>\n<li>Pilot;<\/li>\n<li>Harbour master;<\/li>\n<li>Conservator of port;<\/li>\n<li>Commissioner of Customs.<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">Coastal Shipping Act, 2025 repeals:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li><span style=\"font-weight: bold;\">Part XIV<\/span> of the <span style=\"font-weight: bold;\"><a href=\"http:\/\/www.scconline.com\/DocumentLink\/2w0mrsKp\" target=\"_blank\" rel=\"noopener\">Merchant Shipping Act, 1958<\/a><\/span> which deals with<span style=\"font-weight: bold;\"> \u201cControl of Indian Ships and Ships Engaged in Coasting Trade\u201d;<\/span><\/li>\n<li><span style=\"font-weight: bold;\">Exception:<\/span> Section 411-A- \u201cPowers of the Central Government to protect interests of Indian Shipping from undue foreign intervention\u201d.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">An Act to regulate coastal shipping and promote coastal trade and encourage domestic participation.<\/p>\n","protected":false},"author":67515,"featured_media":356350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[87010,87008,87009,87011,87012,63325,6141,87013,87014],"class_list":["post-356338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-coastal-shipping-act-2025","tag-coastal-trade","tag-coasting-trade","tag-inland-vessels-act-2021","tag-license-for-coasting-trade","tag-merchant-shipping-act-1958","tag-ministry-of-law-and-justice","tag-national-coastal-and-inland-shipping-strategic-plan","tag-national-database-of-coastal-shipping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Coastal Shipping 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