{"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repealed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repealed-merchant-shipping-act\/","title":{"rendered":"Coastal Shipping Act, 2025 partially repeals Provisions of Merchant Shipping Act, 1958 dealing with Control of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 v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Coastal Shipping Act, 2025 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The objective behind the signing of SOP is to pave the way to promote coastal shipping between the two countries and enhance bilateral trade by bringing down the cost of transportation of\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":357091,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/20\/merchant-shipping-act-india-maritime-reform-seafarer-welfare\/","url_meta":{"origin":356338,"position":1},"title":"Modern Maritime Governance takes shape under Merchant Shipping Act, 2025","author":"Shubhi","date":"August 20, 2025","format":false,"excerpt":"The Merchant Shipping Act, 2025 marks a pivotal shift in India\u2019s maritime governance, replacing the decades-old 1958 framework with a modern, globally aligned legal structure that champions safety, sustainability, and the growth of the blue economy.","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Merchant Shipping Act 2025","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Merchant-Shipping-Act-2025.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Merchant-Shipping-Act-2025.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Merchant-Shipping-Act-2025.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Merchant-Shipping-Act-2025.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":90491,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/12\/07\/salient-features-of-the-draft-inland-vessels-bill-2016\/","url_meta":{"origin":356338,"position":2},"title":"Salient Features of the Draft Inland Vessels Bill, 2016","author":"Saba","date":"December 7, 2016","format":false,"excerpt":"The Draft Inland Vessels Bill, 2016 covers the Preamble and has 16 parts i.e. Part I to Part XVI. The salient features are: 1. Part I- enables the Central Government to enact the Bill either in whole or in Part or enact any of its provisions on different dates or\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":342866,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/03\/04\/tonnage-tax-scheme-inland-water-transport\/","url_meta":{"origin":356338,"position":3},"title":"Tonnage Tax Scheme for Inland Water Transport","author":"Bhumika Indulia","date":"March 4, 2025","format":false,"excerpt":"by S. Sriram* and Dinesh Kukreja**","rel":"","context":"In &quot;Experts Corner&quot;","block_context":{"text":"Experts Corner","link":"https:\/\/www.scconline.com\/blog\/post\/category\/experts_corner\/"},"img":{"alt_text":"Tonnage Tax Scheme for Inland Water Transport","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Tonnage-Tax-Scheme-for-Inland-Water-Transport.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Tonnage-Tax-Scheme-for-Inland-Water-Transport.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Tonnage-Tax-Scheme-for-Inland-Water-Transport.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Tonnage-Tax-Scheme-for-Inland-Water-Transport.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":254476,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/20\/know-all-about-indias-present-stance-in-maritime-sector-in-this-conversation-with-sindhura-polepalli\/","url_meta":{"origin":356338,"position":4},"title":"Know All About India&#8217;s Present Stance in Maritime Sector in this conversation with Sindhura Polepalli","author":"Bhumika Indulia","date":"September 20, 2021","format":false,"excerpt":"Interviewed by Achintaya Soni","rel":"","context":"In &quot;Interviews&quot;","block_context":{"text":"Interviews","link":"https:\/\/www.scconline.com\/blog\/post\/category\/interviews\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-32.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-32.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-32.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-32.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-32.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":72101,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/09\/22\/cabinet-approves-enactment-of-admiralty-jurisdiction-and-settlement-of-maritime-claims-bill-2016-and-repeal-five-archaic-admiralty-statutes\/","url_meta":{"origin":356338,"position":5},"title":"Cabinet approves enactment of Admiralty (Jurisdiction and Settlement of Maritime Claims) Bill, 2016 and repeal five archaic admiralty statutes","author":"Saba","date":"September 22, 2016","format":false,"excerpt":"The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its approval to the proposal of Ministry of Shipping to enact Admiralty (Jurisdiction and Settlement of Maritime Claims) Bill, 2016 and to repeal five archaic admiralty statutes. 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