In news

Ministry of Ports, Shipping and Waterways recently issued two draft Bills for public consultation, namely ‘Aids to Navigation Bill 2020’ and ‘Coastal Shipping Bill 2020’ and now this historical ‘Draft Merchant Shipping Bill 2020’ is being issued.

Aim

To repeal and replace the Merchant Shipping Act, 1958 (Act No. 44 of 1958) and the Coasting Vessels Act, 1838 (Act No. 19 of 1838).

Details

• The Bill seeks to provide increased opportunities for investment and provide greater impetus to a self-reliant domestic investment climate in the maritime industry.
• It has been a priority of Prime Minister Shri Narendra Modi’s government to replace all archaic colonial laws with modern and contemporary International laws with active participation of people to enhance transparency in the governance.

The envisioned advantages of the Merchant Shipping Bill, 2020 

• Promoting ease of doing business- The Bill does away with requirement of general trading license for Indian vessels
• Embracing digital technology- It enables electronic means of registration, and grants statutory recognition to electronic agreements, records, and log books, in addition to electronic licenses, certificates and payments.
• Increasing tonnage and Vessel as a Tradable Asset-The Bill seeks to increase India’s tonnage by widening the eligibility criteria for ownership of vessels and providing for the registration of bareboat charter cum demise, thereby increasing opportunities for international trade.
• India as a Bankable Shipping Jurisdiction & avoidance of situations leading to wreck -The proposed Bill seeks to introduce for the first-time statutory framework for regulating maritime emergency response against maritime incidents
• Welfare of Indian seafarers on abandoned vessels and safety of abandoned vessels: Provisions for repatriation of abandoned seafarers have been enhanced, in line with the MLC regulations.
• Strengthening adjudication and predictability of claims: In order to strengthen the investigation and adjudication of claims arising out of collision of vessels, assessors may be tasked by the High Courts to present their findings on the degrees of fault of each vessel.
• India as an Active Enforcement Jurisdiction- The Bill incorporates powers of the Director-General to take action against vessels that are unsafe, and pose a threat to safety of life at sea and environment, and includes a procedure for appeal from detention orders.

The Bill also incorporates provisions that encourage active enforcement of pollution prevention standards and the Central Government has been granted the power to mandate compulsory insurance or such other financial security, for pollution damage.

Source: PIB