Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

On reforms in merchant shipping

Explained | Security Issues | Mains Paper 3: External State & Non-State Actors: Challenges To Internal Security.
Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues related to Merchant Shipping;

Why in the News?

The government is set to introduce the Merchant Shipping Bill, 2024, and the Coastal Shipping Bill, of 2024, aiming to drive critical reforms and deliver transformative changes to strengthen and revitalize the shipping industry.

Have the Merchant Shipping Act, of 1958, and the Coasting Vessels Act, of 1838 failed? 

The Merchant Shipping Act, 1958, and the Coasting Vessels Act, 1838, do not meet contemporary maritime needs and regulatory requirements as follows:

  • Regulatory Gaps: Significant gaps exist for offshore vessels, which account for nearly 50% of Indian-flagged vessels. The current framework fails to regulate these vessels adequately.
  • Seafarer Welfare Limitations: Welfare provisions are restricted to Indian-flagged ships, neglecting the majority of Indian seafarers (85%) who work on foreign-flagged vessels.
  • Lack of Legal Framework: There is no effective legal framework to regulate private sector participation in maritime training, leading to unauthorized institutions operating without oversight.
  • Inadequate Implementation of International Conventions: The existing laws lack provisions to implement various international conventions that India has signed or plans to ratify.

 

What are the key features of the New Merchant Shipping Bill 2024?

  • Ease of Registration: The Bill allows for reduced ownership thresholds (from 100% to 51%) for Indian entities and permits foreign entities to hold shares in Indian vessels while ensuring majority ownership remains with Indians.
  • Expanded Scope of Vessels: It broadens the definition of ‘vessels’ to include a variety of crafts (e.g., submersibles, barges), ensuring comprehensive regulatory oversight.
  • Temporary Registration for Ship Recycling: Introduces provisions for temporary registration of vessels destined for demolition, facilitating operations in ship recycling hubs like Alang.
  • Strengthened Coastal Security: Empowers authorities to issue instructions across all vessel categories to enhance coastal security.
  • Integration with International Standards: Aligns with global best practices from leading maritime jurisdictions like the U.K., Norway, and Singapore.

What are some of the international maritime conventions that India has ratified? 

  • International Convention for the Safety of Life at Sea (SOLAS): Establishes minimum safety standards in the construction and operation of ships.
  • International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW): Sets standards for training and certification of seafarers.
  • Maritime Labour Convention (MLC): Focuses on the rights and welfare of seafarers, ensuring decent working conditions.
  • International Convention on Civil Liability for Oil Pollution Damage (CLC): Addresses liability for oil pollution damage from ships.
  • International Convention for the Prevention of Pollution from Ships (MARPOL): Aims to minimize pollution from ships, covering various aspects of marine pollution.
  • Convention on Limitation of Liability for Maritime Claims (LLMC): Limits the liability of shipowners in case of maritime claims.
  • Wreck Removal Convention: Provides a legal framework for the removal of wrecks to prevent marine pollution.

Will the new Bills address maritime training and education as well? 

Yes, the new Merchant Shipping Bill, of 2024, specifically addresses maritime training and education, aiming to fill regulatory gaps and ensure standardization.

  • Establishment of a Legal Framework: The new Merchant Shipping Bill introduces clear legal provisions to regulate maritime training institutes, addressing the absence of such a framework in the existing law.
  • Elimination of Unauthorised Institutes: It empowers the government to act against unauthorised maritime training institutes, ensuring only approved institutions operate and deliver high-quality, standardised education.
  • Alignment with Global Standards: The Bill ensures maritime training aligns with international best practices, enhancing the employability and skills of Indian seafarers in the global maritime sector.

Way forward: 

  • Robust Implementation and Monitoring: Ensure effective enforcement of the new Bills by establishing transparent regulatory mechanisms, leveraging technology for compliance, and regular monitoring to address gaps swiftly.
  • Stakeholder Engagement and Capacity Building: Foster collaboration between the government, private sector, and international maritime bodies to enhance infrastructure, promote innovation, and build capacity for sustainable growth in the maritime sector.

Mains PYQ:

Q What are the maritime security challenges in India? Discuss the organisational, technical and procedural initiatives taken to improve maritime security. (UPSC IAS/2022)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥Mentorship New Batch Launch
Click Here
💥Mentorship New Batch Launch
Click