Centre may go ahead and approve a major decision for the shipping sector in the Cabinet meeting and clear the Coastal Shipping Bill 2024, CNBC Awaaz reported on October 16 citing sources familiar with the development.
Shares of Shipping Corporation and GE Shipping were sharply higher after the news report, which could pave the way for measures to improve traffic at major ports, it is leant. GE Shipping had during its June quarter earnings call said that the company will evaluate entering the container shipping business, as part of a diversification strategy.
The Bill proposes to do away with the requirement of trading licence for Indian flag vessels for coastal trade. Regulation for international trade ships are also expected to be aligned to global standard, it is learnt.
The Bill also proposes to integrate coastal maritime transport with inland waterways. The Centre aims to create conducive environment to reduce transportation costs, and at the same time encourage competitive in the sector. Steps could also be put in place for Indian vessels to increase their share in coastal shipping.
India is aiming at a two-fold growth in its container handling capacity over the next five years, according to Shipping Minister Sarbananda Sonowal, aiming to create 20 lakh jobs. Minister also said that plans are on to set up ship building and repair clusters in five states – Gujarat, Maharashtra, Kerala, Andhra Pradesh and Odisha.
The shipping sector has seen rapid growth in recent years and a need was felt to have a separate legislation on coastal shipping, according to the Ministry of Shipping. Shipping has also emerged as an integral part of the transport chain, and a policy for the sector will help meet demands of the shipping industry, the ministry said.
India is the 16th largest maritime nation in the world, and the Indian maritime sector contributes to 95% of India’s trade by volume, and 70% by value, as per data from Invest India. India is also the 3rd largest nation in terms of ship recycling, by tonnage. The country has 12 major and 200 non-major ports, with the Jawaharlal Nehru Port Trust in Mumbai being the largest in India, while Mudra being the largest private port.
India's tonnage has been consistently rising over the last decade. As of June 2024, as many as 1,530 Indian-flagged vessels are involved in overseas or domestic trade, operating at 13.7 million Gross Tonnage (GT). This increase in tonnage has led to a shift in business preference towards Indian-flagged vessels over foreign-flagged ones, according to Sarbananda Sonowal.
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