The Coastal Shipping Act, 2025
Administered Ministry: Ministry of Ports, Shipping and Waterways
Section
Section 1 Short title, application and commencement.
(1) This Act may be called the Coastal Shipping Act, 2025.
(2) Save as otherwise provided; the provisions of this Act shall apply to---
(a) every vessel, other than an Indian vessel, engaged in coasting trade, irrespective of the place of residence or domicile of the owner;
(b) every chartered vessel referred to in Chapter IV; and
(c) coastal waters of India.
(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
1. 15th day of March, 2026, vide notifn. No. S.O. 1243 (E), dated 10th day of March, 2026, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).
Section 2 Definitions.
(1) In this Act, unless the context otherwise requires,---
(a) "coasting trade" means carriage of goods or passengers by sea from any port or place in India to any other port or place in India, or performing any service within coastal waters but shall not include fishing of any kind.
Explanation.---For the purposes of this clause, "service" includes exploration, exploitation, research, and any other commercial activity in the coastal waters other than carriage of goods or passengers by sea;
(b) "coastal waters" means any part of the territorial waters of India, along with any part of the adjoining maritime zones of India within the meaning of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976), for undertaking coasting trade:
Provided that the Central Government may, by notification, specify any port or place including inland waters of India, as part of the coastal waters for the purposes of this Act;
(c) "committee" means the committee constituted under sub-section (3) of section 8 for preparing the National Coastal and Inland Shipping Strategic Plan;
(d) "Director-General" means the Director-General appointed under the Merchant Shipping Act, 1958 (44 of 1958);
(e) "Indian vessel" means any vessel registered in India under the Merchant Shipping Act, 1958 (44 of 1958);
(f) "licence" means the licence issued by the Director-General under section 4 or section 11;
(g) "licensee" includes the owner or master or charterer or operator or any person operating the vessel under a licence granted to such vessel by the Director-General;
(h) "National Database of Coastal Shipping" means the database maintained by the Director-General under section 9;
(i) "notification" means a notification published in the Gazette of India or the Official Gazette of a State, as the case may be, and the expression "notify" with its grammatical variation and cognate expressions, shall be construed accordingly;
(j) "prescribed" means prescribed by rules made by the Central Government under this Act;
(k) "principal officer" means the principal officer of the Mercantile Marine Department referred to in the Merchant Shipping Act, 1958 (44 of 1958);
(l) "proper officer" shall have the meaning assigned to it in clause (34) of section 2 of the Customs Act, 1962 (52 of 1952);
(m) "Strategic Plan" means the National Coastal and Inland Shipping Strategic Plan published under sub-section (1) of section 8;
(n) "vessel" includes every description of water craft, used or capable of being used in the marine environment, whether self-propelled or not, such as ship, boat, sailing vessel, fishing vessel, submersible, semi-submersible, hydrofoils, non-displacement crafts, amphibious crafts, wing-in-ground crafts, pleasure crafts, barges, lighters, mobile offshore drilling units and mobile offshore units.
(2) Words and expressions used and not defined in this Act but defined in the Merchant Shipping Act, 1958 (44 of 1958), shall have the meanings respectively assigned to them in that Act.
(a) "coasting trade" means carriage of goods or passengers by sea from any port or place in India to any other port or place in India, or performing any service within coastal waters but shall not include fishing of any kind.
Explanation.---For the purposes of this clause, "service" includes exploration, exploitation, research, and any other commercial activity in the coastal waters other than carriage of goods or passengers by sea;
(b) "coastal waters" means any part of the territorial waters of India, along with any part of the adjoining maritime zones of India within the meaning of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976), for undertaking coasting trade:
Provided that the Central Government may, by notification, specify any port or place including inland waters of India, as part of the coastal waters for the purposes of this Act;
(c) "committee" means the committee constituted under sub-section (3) of section 8 for preparing the National Coastal and Inland Shipping Strategic Plan;
(d) "Director-General" means the Director-General appointed under the Merchant Shipping Act, 1958 (44 of 1958);
(e) "Indian vessel" means any vessel registered in India under the Merchant Shipping Act, 1958 (44 of 1958);
(f) "licence" means the licence issued by the Director-General under section 4 or section 11;
(g) "licensee" includes the owner or master or charterer or operator or any person operating the vessel under a licence granted to such vessel by the Director-General;
(h) "National Database of Coastal Shipping" means the database maintained by the Director-General under section 9;
(i) "notification" means a notification published in the Gazette of India or the Official Gazette of a State, as the case may be, and the expression "notify" with its grammatical variation and cognate expressions, shall be construed accordingly;
(j) "prescribed" means prescribed by rules made by the Central Government under this Act;
(k) "principal officer" means the principal officer of the Mercantile Marine Department referred to in the Merchant Shipping Act, 1958 (44 of 1958);
(l) "proper officer" shall have the meaning assigned to it in clause (34) of section 2 of the Customs Act, 1962 (52 of 1952);
(m) "Strategic Plan" means the National Coastal and Inland Shipping Strategic Plan published under sub-section (1) of section 8;
(n) "vessel" includes every description of water craft, used or capable of being used in the marine environment, whether self-propelled or not, such as ship, boat, sailing vessel, fishing vessel, submersible, semi-submersible, hydrofoils, non-displacement crafts, amphibious crafts, wing-in-ground crafts, pleasure crafts, barges, lighters, mobile offshore drilling units and mobile offshore units.
(2) Words and expressions used and not defined in this Act but defined in the Merchant Shipping Act, 1958 (44 of 1958), shall have the meanings respectively assigned to them in that Act.
Section 3 Prohibition on coasting trade.
(1) No vessel, other than an Indian vessel, shall engage in coasting trade in the coastal waters, except under a licence granted by the Director-General under section 4:
Provided that the Director-General may, by order in writing, permit a vessel registered under the Inland Vessels Act, 2021 (24 of 2021), to engage in coasting trade to such extent and subject to such conditions, as may be specified in that order.
(2) Whoever engages any person to undertake coasting trade shall ensure that such person does not violate the provisions of sub-section (1).
Provided that the Director-General may, by order in writing, permit a vessel registered under the Inland Vessels Act, 2021 (24 of 2021), to engage in coasting trade to such extent and subject to such conditions, as may be specified in that order.
(2) Whoever engages any person to undertake coasting trade shall ensure that such person does not violate the provisions of sub-section (1).
Section 4 Licence for coasting trade.
(1) Every application for the grant of a licence for coasting trade shall be made to the Director-General in such form, manner and on payment of such fee, as may be prescribed.
(2) Before issuing a licence under this section, the Director-General shall take into consideration the following factors, namely:---
(a) whether the applicant has previously held a licence that was cancelled;
(b) whether the applicant has engaged in violation of any of the provisions of this Act prior to or during the period of pendency of his application;
(c) citizenship of the crew;
(d) build requirements of the vessel;
(e) availability of vessels on the route;
(f) licences granted to vessels for the same route;
(g) safety, national and maritime security concerns;
(h) equipment on board the vessel including communication equipment;
(i) the Strategic Plan under section 8;
(j) cost efficiency of transport;
(k) validity of the certificates of vessel and crew;
(l) validity of the certificate of insurance of the vessel; and
(m) any other requirements as the Director-General may consider necessary in furtherance of the objectives of this Act.
(3) A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may be prescribed:
Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary for grant of the licence.
(4) The class or category of licence to be granted under this section shall be such as may be prescribed.
(2) Before issuing a licence under this section, the Director-General shall take into consideration the following factors, namely:---
(a) whether the applicant has previously held a licence that was cancelled;
(b) whether the applicant has engaged in violation of any of the provisions of this Act prior to or during the period of pendency of his application;
(c) citizenship of the crew;
(d) build requirements of the vessel;
(e) availability of vessels on the route;
(f) licences granted to vessels for the same route;
(g) safety, national and maritime security concerns;
(h) equipment on board the vessel including communication equipment;
(i) the Strategic Plan under section 8;
(j) cost efficiency of transport;
(k) validity of the certificates of vessel and crew;
(l) validity of the certificate of insurance of the vessel; and
(m) any other requirements as the Director-General may consider necessary in furtherance of the objectives of this Act.
(3) A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may be prescribed:
Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary for grant of the licence.
(4) The class or category of licence to be granted under this section shall be such as may be prescribed.
Section 5 Suspension, revocation or modification of licence.
(1) The Director-General may, if the circumstances of the case so require to meet the objectives of this Act, by order in writing and for reasons to be recorded therein, suspend, revoke or modify a licence granted under section 4, if the licensee, or any person engaged by him---
(a) violates any condition of the licence; or
(b) fails to comply with any requirement under any law for the time being in force applicable to the vessel; or
(c) fails to comply with a direction issued under section 35; or
(d) fails to pay any fine or serve any sentence imposed under this Act:
Provided that the suspension, revocation or modification of licence under this clause shall not absolve the licensee from his obligation for payment of any fine or penalty, or undergoing any punishment, imposed on him under this Act.
(2) No licence granted under section 4 shall be suspended, revoked or modified under sub-section (1), unless the licensee has been given a reasonable opportunity of being heard.
(3) A licensee, who intends to modify the particulars of the licence granted to him under section 4, may make an application to the Director-General in that behalf in such form and manner, as may be prescribed.
(4) Where the licence granted under section 4 ceases to be valid due to expiry of its period or revocation, the licensee shall---
(a) return it or cause it to be returned to the Director-General; and
(b) cease to engage in coasting trade,
within such period as may be specified by the Director-General.
(a) violates any condition of the licence; or
(b) fails to comply with any requirement under any law for the time being in force applicable to the vessel; or
(c) fails to comply with a direction issued under section 35; or
(d) fails to pay any fine or serve any sentence imposed under this Act:
Provided that the suspension, revocation or modification of licence under this clause shall not absolve the licensee from his obligation for payment of any fine or penalty, or undergoing any punishment, imposed on him under this Act.
(2) No licence granted under section 4 shall be suspended, revoked or modified under sub-section (1), unless the licensee has been given a reasonable opportunity of being heard.
(3) A licensee, who intends to modify the particulars of the licence granted to him under section 4, may make an application to the Director-General in that behalf in such form and manner, as may be prescribed.
(4) Where the licence granted under section 4 ceases to be valid due to expiry of its period or revocation, the licensee shall---
(a) return it or cause it to be returned to the Director-General; and
(b) cease to engage in coasting trade,
within such period as may be specified by the Director-General.
Section 6 Reporting requirements.
Every vessel, including Indian vessels engaged in coasting trade, shall report to the Director-General the following information in such form and manner as may be prescribed, namely:---
(a) the port or ports which it will visit in the course of its voyage;
(b) goods or passengers carried by such vessel and the ports or places where such goods or passengers will be dropped off;
(c) any offshore area in which it may operate or navigate for the purposes of its voyage; and
(d) such other information as the Director-General may deem fit.
(a) the port or ports which it will visit in the course of its voyage;
(b) goods or passengers carried by such vessel and the ports or places where such goods or passengers will be dropped off;
(c) any offshore area in which it may operate or navigate for the purposes of its voyage; and
(d) such other information as the Director-General may deem fit.
Section 7 Licence to be produced for port clearance.
(1) No proper officer shall grant clearance to a vessel, other than an Indian vessel, engaging in coasting trade to enter or depart from a port, unless the licensee or agent of such vessel produces the licence granted under section 4.
(2) Where any vessel fails to comply with the requirements of this Act, the Director-General or the principal officer or an officer designated by the Central Government in this behalf may, after giving an opportunity of being heard to the licensee or agent of such vessel, by order in writing and for reasons to be recorded therein, detain that vessel until an order is issued for the release of such vessel.
(2) Where any vessel fails to comply with the requirements of this Act, the Director-General or the principal officer or an officer designated by the Central Government in this behalf may, after giving an opportunity of being heard to the licensee or agent of such vessel, by order in writing and for reasons to be recorded therein, detain that vessel until an order is issued for the release of such vessel.
Section 8 National Coastal and Inland Shipping Strategic Plan.
(1) The Central Government shall, within a period of two years from the date of commencement of this Act, by notification, publish a National Coastal and Inland Shipping Strategic Plan for the purposes of this Act, which shall be updated every two years by a like notification.
(2) The Strategic Plan shall include the following, namely:---
(a) assessment of the condition of coastal shipping routes in India including routes occupied by inland waterways;
(b) identification of the operational improvements required in coastal shipping, including those by way of integration with inland waterway routes, in order to make coastal maritime transport a cost-efficient mode of transportation for goods and passengers;
(c) long term forecasts of traffic on coastal shipping and inland waterways network;
(d) identification of best practices for improving the performance of coastal shipping including the synergy presented by inland waterway routes and other modes of transportation;
(e) identification of new routes for coastal shipping and integration thereof with inland waterways and existing coastal shipping routes;
(f) measures for the promotion of building, registration and participation of Indian vessels in coastal shipping in India;
(g) recommendations regarding the conditions subject to which vessels registered under the Inland Vessels Act, 2021 (24 of 2021), may engage in coasting trade of India; and
(h) such other matters as may be prescribed.
(3) The Central Government shall constitute a committee consisting of the following members for preparing the Strategic Plan, namely:---
(a) Director-General of Shipping---Chairperson, ex officio;
(b) Chairman, Inland Waterways Authority of India constituted under section 3 of the Inland Waterways Authority of India Act, 1985 (82 of 1985)---Member, ex officio;
(c) one representative of each Board of Major Port Authority constituted under sub-section (1) of section 3 of the Major Port Authority Act, 2021 (1 of 2021)---Members;
(d) one representative of the National Security Council Secretariat---Member;
(e) one representative of each State Maritime Board or any other body responsible for the administration of ports other than major ports, in a State or Union territory---Members;
(f) two representatives to represent ship owners---Members;
(g) two representatives of seafarers---Members; and
(h) such other persons having expertise in the field of coastal trade, mercantile and marine trade or maritime sector, as the Central Government may deem necessary---Members.
(4) The committee shall meet at such time and place, and shall observe such procedure for the transaction of business at its meetings including the quorum at such meetings, as may be prescribed.
(5) The committee shall prepare a draft of the Strategic Plan for consideration and approval of the Central Government and the Central Government shall, after considering the draft Strategic Plan, approve the Plan with or without modifications.
(6) The Central Government shall make available the Strategic Plan on its website for public access.
(2) The Strategic Plan shall include the following, namely:---
(a) assessment of the condition of coastal shipping routes in India including routes occupied by inland waterways;
(b) identification of the operational improvements required in coastal shipping, including those by way of integration with inland waterway routes, in order to make coastal maritime transport a cost-efficient mode of transportation for goods and passengers;
(c) long term forecasts of traffic on coastal shipping and inland waterways network;
(d) identification of best practices for improving the performance of coastal shipping including the synergy presented by inland waterway routes and other modes of transportation;
(e) identification of new routes for coastal shipping and integration thereof with inland waterways and existing coastal shipping routes;
(f) measures for the promotion of building, registration and participation of Indian vessels in coastal shipping in India;
(g) recommendations regarding the conditions subject to which vessels registered under the Inland Vessels Act, 2021 (24 of 2021), may engage in coasting trade of India; and
(h) such other matters as may be prescribed.
(3) The Central Government shall constitute a committee consisting of the following members for preparing the Strategic Plan, namely:---
(a) Director-General of Shipping---Chairperson, ex officio;
(b) Chairman, Inland Waterways Authority of India constituted under section 3 of the Inland Waterways Authority of India Act, 1985 (82 of 1985)---Member, ex officio;
(c) one representative of each Board of Major Port Authority constituted under sub-section (1) of section 3 of the Major Port Authority Act, 2021 (1 of 2021)---Members;
(d) one representative of the National Security Council Secretariat---Member;
(e) one representative of each State Maritime Board or any other body responsible for the administration of ports other than major ports, in a State or Union territory---Members;
(f) two representatives to represent ship owners---Members;
(g) two representatives of seafarers---Members; and
(h) such other persons having expertise in the field of coastal trade, mercantile and marine trade or maritime sector, as the Central Government may deem necessary---Members.
(4) The committee shall meet at such time and place, and shall observe such procedure for the transaction of business at its meetings including the quorum at such meetings, as may be prescribed.
(5) The committee shall prepare a draft of the Strategic Plan for consideration and approval of the Central Government and the Central Government shall, after considering the draft Strategic Plan, approve the Plan with or without modifications.
(6) The Central Government shall make available the Strategic Plan on its website for public access.
Section 9 National Database of Coastal Shipping.
(1) The Director-General shall maintain a web portal of a database to be called the National Database of Coastal Shipping in such form and manner as may be prescribed.
(2) The National Database of Coastal Shipping shall contain the following information on coasting trade in India, namely:---
(a) applications received for licence under section 4;
(b) licences granted under section 4;
(c) terms and conditions of the licences so granted;
(d) routes, voyages and services in the coasting trade of India;
(e) requirement of applicants for grant of licences under section 4;
(f) expired and revoked licences under section 5;
(g) information reported to the Director-General under section 6;
(h) such other information as the Director-General may deem fit.
(3) The Director-General shall make available the National Database of Coastal Shipping in electronic form on a web portal for access to the public and it shall be updated every month.
(2) The National Database of Coastal Shipping shall contain the following information on coasting trade in India, namely:---
(a) applications received for licence under section 4;
(b) licences granted under section 4;
(c) terms and conditions of the licences so granted;
(d) routes, voyages and services in the coasting trade of India;
(e) requirement of applicants for grant of licences under section 4;
(f) expired and revoked licences under section 5;
(g) information reported to the Director-General under section 6;
(h) such other information as the Director-General may deem fit.
(3) The Director-General shall make available the National Database of Coastal Shipping in electronic form on a web portal for access to the public and it shall be updated every month.
Section 10 Application of Chapter.
This Chapter shall apply to all sea going vessels chartered by a citizen of India or a non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership or any other entity as the Central Government may, by notification, specify in this behalf, proceeding to sea from a port or place---
(a) in India, to a port or place outside India; or
(b) outside India, to a port or place in India or outside India.
(a) in India, to a port or place outside India; or
(b) outside India, to a port or place in India or outside India.
Section 11 Requirement of licence by chartered vessels.
(1) No vessel, other than an Indian vessel, chartered by a citizen of India or a non-resident Indian or an overseas citizen of India or a company or a co-operative society or a limited liability partnership or any other entity as the Central Government may, by notification specify in this behalf, shall be taken to sea from a port or place within India or outside India, except under a licence granted by the Director-General under this section:
Provided that no vessel which is chartered by an overseas citizen of India shall be required to obtain licence, if such vessel is chartered exclusively for operation outside India.
(2) A licence granted under this section may be---
(a) a general licence; or
(b) a licence for a specified period or voyage.
(3) Every application for the grant of a licence under this section shall be made to the Director-General in such form, manner and on payment of such fee, as may be prescribed.
(4) A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may be prescribed:
Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary, for grant of the licence under this section.
Provided that no vessel which is chartered by an overseas citizen of India shall be required to obtain licence, if such vessel is chartered exclusively for operation outside India.
(2) A licence granted under this section may be---
(a) a general licence; or
(b) a licence for a specified period or voyage.
(3) Every application for the grant of a licence under this section shall be made to the Director-General in such form, manner and on payment of such fee, as may be prescribed.
(4) A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may be prescribed:
Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary, for grant of the licence under this section.
Section 12 Suspension, revocation or modification of licence granted to chartered vessels.
(1) The Director-General may, at any time, if the circumstances of the case so require, by order in writing and for reasons to be recorded therein, suspend, revoke or modify a licence granted under section 11:
Provided that no such licence shall be suspended, revoked or modified, unless the licensee has been given a reasonable opportunity of being heard.
(2) A licensee, who intends to modify the particulars of the licence granted to him under section 11, may make an application to the Director-General in that behalf in such form and manner, as may be prescribed.
Provided that no such licence shall be suspended, revoked or modified, unless the licensee has been given a reasonable opportunity of being heard.
(2) A licensee, who intends to modify the particulars of the licence granted to him under section 11, may make an application to the Director-General in that behalf in such form and manner, as may be prescribed.
Section 13 Licence granted to chartered vessel to be returned when ceases to be valid.
Where a licence granted under section 11 ceases to be valid due to expiry of its period or revocation, the licensee shall return it or cause it to be returned to the Director-General, within such period as may be specified by the Director-General.
Section 14 No port clearance without production of licence.
No proper officer shall grant port clearance to any vessel requiring a licence under this Chapter, unless the owner, master or agent of the vessel produces a valid licence in respect of such vessel.
Section 15 Punishment for participating in coasting trade in contravention of section 3.
Whoever engages in coasting trade in contravention of the provisions of section 3, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifteen lakh rupees, or four times the value of all fees or commission or payments received by the owner or charterer of the vessel for the voyage, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29.
Section 16 Punishment for participating in coasting trade after licence ceases to be valid.
Whoever engages in coasting trade in contravention of the provisions of clause (b) of sub-section (4) of section 5, shall be 1[liable to penalty] which may extend to ten lakh rupees, or two times the value of all fees or commission or payments received by the licensee of the vessel for all voyages conducted in contravention, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29
1. Subs. by Act 8 of 2026, s. 2 and Sch., for “punishable with imprisonment for a term which may extend to six months, or with fine” (w.e.f. 01.07.2026)
Section 17 Punishment for taking vessel to sea in contravention of section 11.
Whoever takes a vessel to sea in contravention of the provisions of section 11, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifteen lakh rupees, or four times the value of all fees or commission or payments received by the owner or charterer of the vessel for the voyage, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29.
Section 18 Punishment for failure to furnish information or furnishing false information after notice.
If any licensee or agent on whom a notice has been served under sub-section (2) of section 35---
(a) fails to furnish the information required within the time specified; or
(b) furnishes any information or makes any statement which the licensee or agent knows to be false on any material particular,
he shall be 1[liable to penalty which may extend to two lakh rupees], and the vessel shall also be liable for detention under section 29.
1. Subs. by Act 8 of 2026, s. 2 and Sch. for certain words (w.e.f. 01.07.2026).
Section 19 Punishment for violation of order of detention.
If any vessel in respect of which a notice or order for detention has been served under this Act, proceeds to sea before it is released, the licensee of the vessel in respect of which the contravention has taken place shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifteen lakh rupees, or with both, and the vessel shall also be liable for detention under section 29.
Section 20 Punishment for illegally detaining person authorised to detain vessel.
Where any vessel, after detention or order for such detention proceeds to sea with any person authorised to detain any vessel on board before it is released, the licensee or agent of such vessel shall be punishable with imprisonment for a term which may extend to six months or with fine upto one lakh rupees and all expenses of, and incidental to, such person being so taken to sea, or with both, and the vessel shall also be liable for detention under section 29.