New Merchant Shipping Bill to expand ownership and registration rules

11 Nov 2024 CW Team

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)

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)

Infrastructure Transport

14 Oct 2025

Versova-Dahisar Coastal Road Project to Impact 1,200 Trees

The Versova-Dahisar Coastal Road Project in Mumbai will affect over 1,200 trees, according to the Brihanmumbai Municipal Corporation (BMC). Of these, 990 trees will be replanted, while the remaining will be cut down due to construction requirements. The project, which forms a key extension of the on-going Mumbai Coastal Road corridor, aims to ease traffic congestion in the western suburbs and enhance north-south connectivity along the city’s coastline. The BMC has assured that replantation efforts will be carried out in designated areas to maintain ecological balance and offset the environm..

Infrastructure Transport

14 Oct 2025

New Entry-Exit Planned on Vadodara–Mumbai Expressway near Ankleshwar

The Vadodara–Mumbai Expressway is set to get a new entry and exit point near Ankleshwar, aimed at improving regional connectivity and reducing travel time for commuters in south Gujarat. The new interchange, proposed by the National Highways Authority of India (NHAI), will offer smoother access to nearby industrial and residential areas. The project forms part of the Bharatmala Pariyojana initiative, designed to strengthen India’s expressway network and boost economic corridors. Once operational, the new interchange is expected to enhance logistics efficiency by offering improved freight..

Infrastructure Transport

14 Oct 2025

PMRDA Launches Rs 5,580 Mn Road Upgrade Plan to Ease Chakan Traffic

The Pune Metropolitan Region Development Authority (PMRDA) has launched Rs 5,580 million road infrastructure upgrade plan to address severe traffic congestion in the Chakan industrial region. The initiative aims to improve connectivity between Pune and major industrial hubs, including Talegaon, Moshi, and Alandi. Under the plan, PMRDA will widen existing roads, construct new link roads, and improve junctions across the Chakan–Talegaon and Moshi-Alandi corridors. These measures are expected to streamline the movement of goods and workers, benefiting the area are automotive and manufacturing ..