New Merchant Shipping Bill to expand ownership and registration rules
PORTS & SHIPPING

New Merchant Shipping Bill to expand ownership and registration rules

The Indian government has approved the Merchant Shipping Bill, 2024, aiming to broaden vessel ownership eligibility for Indian registration and allow the registration of ships chartered on a bareboat charter-cum-demise (BBCD) basis. This move is intended to boost India’s shipping tonnage and increase its share in international trade.

Under the proposed law, an Indian vessel can be owned by Indian citisens, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Indian-registered companies, and other entities designated by the government. This widens the current ownership criteria, allowing vessels that are "substantially owned" by Indian entities, NRIs, OCIs, and LLPs to register under the Indian flag.

Previously, only ships wholly owned by Indian entities could be registered. By shifting ownership eligibility rules into regulatory frameworks, the Ministry of Ports, Shipping and Waterways can modify criteria as needed without legislative amendments.

The Bill also addresses the BBCD method, where a ship can be acquired by paying a partial amount upfront, with the remainder financed over time. Currently, vessels on BBCD can switch to an Indian flag only after the final payment. The new law will allow registration before full payment, facilitating earlier Indian flagging.

Additional provisions include simplified compliance and digital processes, such as electronic registration, licenses, and records. This aligns with the government’s aim to promote ease of business and support domestic shipping, as announced by Finance Minister Nirmala Sitharaman in the 2024 Budget.

India, which currently ranks 18th in global ship ownership, pays substantial freight costs to foreign shipping firms due to a low share of Indian-flagged cargo vessels, dropping from 40.7% in 1988 to just 5.4% in 2022. The reliance on foreign ships has led to significant foreign exchange outflows and heightened risks during geopolitical crises.

The Bill’s reforms aim to build a resilient national fleet, making India’s shipping industry self-reliant, strengthening its global position, and enhancing transport services’ contribution to exports. Developing a robust national fleet is estimated to require an investment of Rs 55 lakh crore under the Maritime Amrit Kaal 2047 Vision, which seeks to reduce dependence on foreign ships and mitigate supply chain disruptions. (ET)

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Indian government has approved the Merchant Shipping Bill, 2024, aiming to broaden vessel ownership eligibility for Indian registration and allow the registration of ships chartered on a bareboat charter-cum-demise (BBCD) basis. This move is intended to boost India’s shipping tonnage and increase its share in international trade. Under the proposed law, an Indian vessel can be owned by Indian citisens, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Indian-registered companies, and other entities designated by the government. This widens the current ownership criteria, allowing vessels that are substantially owned by Indian entities, NRIs, OCIs, and LLPs to register under the Indian flag. Previously, only ships wholly owned by Indian entities could be registered. By shifting ownership eligibility rules into regulatory frameworks, the Ministry of Ports, Shipping and Waterways can modify criteria as needed without legislative amendments. The Bill also addresses the BBCD method, where a ship can be acquired by paying a partial amount upfront, with the remainder financed over time. Currently, vessels on BBCD can switch to an Indian flag only after the final payment. The new law will allow registration before full payment, facilitating earlier Indian flagging. Additional provisions include simplified compliance and digital processes, such as electronic registration, licenses, and records. This aligns with the government’s aim to promote ease of business and support domestic shipping, as announced by Finance Minister Nirmala Sitharaman in the 2024 Budget. India, which currently ranks 18th in global ship ownership, pays substantial freight costs to foreign shipping firms due to a low share of Indian-flagged cargo vessels, dropping from 40.7% in 1988 to just 5.4% in 2022. The reliance on foreign ships has led to significant foreign exchange outflows and heightened risks during geopolitical crises. The Bill’s reforms aim to build a resilient national fleet, making India’s shipping industry self-reliant, strengthening its global position, and enhancing transport services’ contribution to exports. Developing a robust national fleet is estimated to require an investment of Rs 55 lakh crore under the Maritime Amrit Kaal 2047 Vision, which seeks to reduce dependence on foreign ships and mitigate supply chain disruptions. (ET)

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?