India is looking
at reworking its merchant shipping laws as it replaces the existing eponymous
Act of 1958. The new provisions will look to include up-to-date international
maritime conventions to which the country is a party; allow for easier
registration of ships under Indian flag by NRIs, overseas citizens of India,
corporates including limited liability partnerships; enable electronic
registration of vessels and granting recognition to e-documents like log-books,
record books.
Merchant shipping
refers to activities that are carried out for commerce rather than for defence
or warfare.
Changes to the law that have
been proposed are currently being deliberated with the Ministry of Ports,
Shipping and Waterways being the nodal ministry.
Proposed under the
new provisions is a three-tier dispute resolution mechanism. It will look to
resolve disagreements arising between ship-owners and salvors (those engaged in
salvaging ships lost at sea), and also between sea-farers and owners or masters
or agents of ship. The resolution mechanism will look “to make the award of the
shipping master enforceable instead of enforcement by a Magistrate,” an
official aware of the new draft rules told businessline.
Previously ambiguous terms
like “abandoned vessels” have been defined, while the new rules call for action
against “unsafe vessels” too. “The Centre has been empowered to direct port
authorities and others to take measures in respect of abandoned vessels,” the
official said.
The Merchant Shipping Act of
1958 provided for registration of Indian ships and allows enabling provisions
looking to accelerate the pace of development of the sector. The Act is divided
into 24 parts, each part dealing with specific aspects of merchant shipping
like registration of ships, sailing vessels and fishing vessels, National
Shipping Board, manning of ships, engagement, discharge and repatriation of
seamen and apprentices, safety of passenger and cargo ships, control of Indian
ships and ships engaged in the coasting trade, collisions, prevention and
control of pollution of the sea by oil from ships, limitation of shipowners’
liability, civil liability for oil pollution damage, among others.
An official aware of the
on-going discussions said, new provisions include a section in marine incidents
and emergent response. The idea is to provide confidence to ship-owners that
there are appropriate statutory measures for safety of vessels. Stringent
rules, including persecution and conviction, is being mulled for prevention of
pollution and containment of the same. Air pollution arising out of ships
operating in the sea has also been covered with appropriate actions.
According to the
official, there will be reduction in compliance burden under the new rules. It will also
promote ease of doing business, embrace digital tech, improve ownership
criteria and also provide a statutory framework for handling maritime
emergencies.
Incidentally, there were
previous attempts at re-working the Merchant Shipping Act in 2016. But the then
Bill fell through in May 2019 with the 16th Lok Sabha being dissolved.
Re-working began in February – March 2021 and between July 2022 and July 2023
the Legislative Department reviewed the draft and there was receipt of
concurrence.