The Inland Vessels Act, 2021

Administered Ministry: Ministry of Ports, Shipping and Waterways

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Section
Section 1 Short title, extent and commencement.
(1) This Act may be called the Inland Vessels Act, 2021.

(2) It extends to the whole of India.

(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for bringing into force different provisions of this Act in different States or Union territories, as it may deem fit by the Central Government.

1. 16th February, 2022,--,Section 1 and 106, vide Notification S.O. 743(E), dated 16th February, 2022, see Gazette of India, Extraordinary, Part II, sec. 3(ii).

7th of June, 2022,--Section 2 to 105 and 107 to 114, vide Notification S.O. 2604(E), dated 7th June, 2022, see Gazette of India, Extraordinary, Part II, sec. 3(ii).
Section 2 Application and scope.
(1) Save as otherwise expressly provided in this Act, the provisions of Chapters I, III, X, XVI and XVIII shall apply to all inland vessels plying within inland waters of India, and--

(a) Chapters IV, V, VI, VIII, IX, X, XI, XII, XIII and XIV shall apply to all mechanically propelled vessels registered under this Act;

(b) Chapters VIII, IX, X, XI, XII and XIII shall apply to vessels registered under such laws in force in India other than this Act, or registered in such laws in force in any country other than India; but endorsed or recognised under this Act for the purpose of plying within inland waterways;

(c) Chapters IV, V, VI, VII, VIII, IX, X, XI, XII, XIII and XIV shall apply to all vessels identified as special category vessels plying or using inland waterways;

(d) Chapter XVII shall apply to all non-mechanically propelled inland vessels.

(2) Notwithstanding anything contained in sub-section (1), the Central Government or the State Government, as the case may be, may extend the application of any Chapter or provision of this Act to any class or category of inland vessels, or to any region of inland waters, by notification in the Official Gazette.



Section 3 Definitions.
In this Act, unless the context otherwise requires,---

(a) "authorised insurer" means any insurance company carrying on any class of marine insurance business, which is registered or recognised by the Central Government under any law for the time being in force in India;

(b) "bareboat charter" means an arrangement for the hiring of a vessel without crew, where the charterer is responsible for appointing the crew and making other arrangements;

(c) "bareboat charter-cum-demise" is a bareboat charter where the ownership of the vessel is intended to be transferred after a specified period to the company to which it has been chartered;

(d) "cargo terminal" means a place designated for the loading, or unloading, or any other allied processes of such loading or unloading of cargo in a port, jetty, wharf or such other places developed within inland waters for the purpose of loading and unloading of cargo;

(e) "casualty" includes any vessel which---

(i) is lost, abandoned, materially damaged;

(ii) causes loss of material or damage to any other vessel;

(iii) causes any loss of life or personal injury;

(iv) causes pollution as a result of or in connection with its operation;

(f) "central database"means the centralised record maintained for recording the data and details of---

(i) vessels;

(ii) registration of vessels;

(iii) crew and manning in the vessels;

(iv) certificates issued in respect of vessels;

(v) reception facilities; and

(vi) such other data,

to be recorded and maintained in the form of an electronic portal or in such other form and manner as may be prescribed by the Central Government;

(g) "certificate of insurance" means a certificate issued by an authorised insurer in pursuance of the insurance premium paid by the insured, and includes a cover note complying with such requirements as may be prescribed by the Central Government;

(h) "competent authority" means the authority referred to in section 6;

(i) "court" means any civil court, revenue court or High Court having jurisdiction over the matters of liabilities and offences as provided in this Act including investigation and inquiry into claims arising out of causalities and accidents within its jurisdiction;

(j) "cover note" includes any note of undertaking issued by the insurer who promises to cover the liability and to indemnify the losses incurred by the insured as provided in the contract of insurance;

(k) "crew" means personnel employed for operation or serving on an inland vessel other than master or passengers as a part of performing the functions of manning;

(l) "dangerous cargo" means any cargo, which, due to its nature, form or content as a whole or in part, are declared as dangerous or potentially dangerous while carried in on any class or category of inland vessels in inland waters under this Act or any other law for the time being in force;

(m) "dangerous goods" means any goods, which, due to its nature, form or content as a whole or in part, are declared as dangerous or potentially dangerous while carried in on any class or category of inland vessels in inland waters under this Act or any other law for the time being in force;

(n) "designated authority" means the authorities appointed by State Government under subsection (3) of section 5;

(o) "fishing vessel" means a vessel fitted with mechanical mode of propulsion, which is exclusively engaged in fishing for profit, within inland waters;

(p) "hazardous chemical" means any chemical, which has been designated as pollutants under this Act or any other law for the time being in force in India;

(q) "inland vessel" includes any mechanically propelled inland vessel or non-mechanically propelled inland vessel which is registered and plying in inland waters, but does not include---

(i) a fishing vessel registered under the Merchant Shipping Act, 1958 (44 of 1958) or the Marine Products Export Development Authority Act, 1972 (13 of 1972); and

(ii) any vessel that are specified as not to be inland vessels by notification by the Central Government.

Explanation.---For the purposes of this clause, it is clarified that a vessel registered under the Merchant Shipping Act, 1958 (44 of 1958) and plying within the inland waters shall be deemed to be an inland vessel registered under this Act;

(r) "inland waters", for the purpose of inland navigation, includes any---

(i) canal, river, lake or other navigable water inward of baseline or as may be declared by notification in the Official Gazette by the Central Government;

(ii) tidal water limit, as may be declared by notification in the Official Gazette by the Central Government;

(iii) national waterways declared by the Central Government; and

(iv) other waters as may be declared by notification in the Official Gazette by the Central Government;

(s) "lien" is a legal right or interest that a creditor has in the inland vessel or any property thereof, retained until a debt or duty is secured, or the performance of some other obligation is satisfied;

(t) "limitation of liability" means the rate or extent of liability within which the owner or such other persons entitled under this Act, may limit the liability or be permitted to limit or cap the liability arising out of claims, in accordance with the procedure laid down and the rates, as may be specified in this Act or as may be prescribed by the Central Government;

(u) "load line" means a water line which is marked on an inland vessel to denote the safe carrying or loading capacity of such vessel;

(v) "master" includes any person including serang or such other person, who is in command or in charge of any inland vessel, and does not include a pilot or harbour master;

(w) "material fact" means a fact of such a nature, which determines the judgment of a prudent insurer, in assessing the extent of his liability, premium to be charged, conditions to be specified and such other terms to be entered and incorporated in a policy of insurance governing the relationship with the insured;

(x) "material particular" means any particular of such a nature, which determines the judgment of a prudent insurer, in assessing the extent of his liability, premium to be charged, conditions to be specified and such other terms to be entered and incorporated in a policy of insurance governing the relationship with the insured;

(y) "mechanically propelled inland vessel" means---

(i) any inland vessel in the inland waters which is propelled by mechanical means of propulsion; or

(ii) floating units, floating surfaces, dumb vessels, barges, rigs, jetties or such other nonmechanically propelled inland vessel, which are towed or pushed with the assistance of another mechanically propelled vessel and used for carriage, storage, transportation and accommodation of passengers and cargo in or through inland waters;

(z) "minimum manning requirement" means the standard and number of persons required for safe manning and navigation of vessels, as may be prescribed by the Central Government;

(za) "non-mechanically propelled inland vessel" means any vessel which is not a mechanically propelled inland vessel;

(zb) "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;

(zc) "obnoxious substance" means any substance, which has been designated as pollutants under this Act or any other law for the time being in force in India;

(zd) "official number" means the number assigned to any vessel by the Registrar of Inland Vessels or such other person appointed under this Act, to be affixed or displayed on a conspicuous part of such vessel to refer, distinguish and identify one vessel from another;

(ze) "oil" means any edible oil carried on vessel as cargo or persistent oil such as crude oil, heavy diesel oil, lubricating oil and white oil, carried on board of a vessel as cargo or fuel;

(zf) "oily mixture" means a mixture with any oil content;

(zg) "owner" means operator, charterer, beneficial owner or registered owner, who is responsible for the activities of the vessel and shall be under obligation to comply with the provisions of this Act in relation to, or in possessing express or implied title under this Act or any other law for the time being in force;

(zh) "passenger" means any person carried on board of a vessel, except persons employed or engaged in any capacity on board of the vessel in connection with the business of the vessel;

(zi) "passenger terminal" means the terminal designated for the embarking or dis-embarking of passengers and the permitted cargo, in a port, jetty, wharf or like places; (zj) "passenger vessel" means any vessel permitted to carry more than twelve passengers;

(zk) "pilot" means a person appointed by the owner of the vessel to assist the master or to steer the vessel in such area of inland water in accordance with the mandatory requirements, as specified in section 83;

(zl) "prescribed" means prescribed by rules by the Central Government or a State Government, as the case may be;

(zm) "priority of lien"means the ranking of liens in the order in which they are perfected or recorded in the book of registry maintained at every port or place of registry;

(zn) "reciprocating country" means any country, as may on the basis of reciprocity, specified by notification by the Central Government to be a reciprocating country for the purposes of this Act;

(zo) "recognised organisation" means any organisation recognised and authorised by the Central Government to perform and execute the functions involved in survey, classification or certification of vessels;

(zp) "salvage" means an act of the salvor in retrieving or saving any property or life in danger due to wreck or accident and includes all expenses incurred by the salvor in the performance of salvage services;

(zq) "salvor" means any person who conducts salvage operations;

(zr) "service provider" includes any person, who in the capacity of owner or operator of an inland vessel used or plying in inland waters, providing services to any service user for the purposes of transportation, storage or accommodation;

(zs) "service user" includes any person who as a passenger or owner of cargo or freight forwarder, uses the services of any inland vessel in the inland waters for transportation, storage or accommodation purposes;

(zt) "special category vessel" means a mechanically propelled inland vessel that is identified under this Act as special by considering its use, purpose, function or utility or the means of propulsion including the fuelling system or source of power for propulsion, such as liquefied natural gas, electrical propulsion, the design, dimensions of construction or areas of operation or such other criteria or standards;

(zu) "vessel" includes every description of water craft used or capable of being used in inland waters, including any ship, boat, sailing vessel, tug, barge or other description of vessel including non-displacement craft, amphibious craft, wing-in-ground craft, ferry, roll on-roll-off vessel, container vessel, tanker vessel, gas carrier or floating unit or dumb vessel used for transportation, storage or accommodation within or through inland waters;

(zv) "wreck" means a state of any vessel, or goods or a part or property of such vessel or carried on the vessel,---

(i) which have been cast into or have fallen into the inland waters and then sunk and remain under water or remains floating on the surface; or

(ii) which have sunk in the inland waters, but are attached to a floating object in order that they may be found again; or

(iii) which are intentionally thrown away or abandoned without hope or intention of recovery; or

(iv) which by its presence in inland waters, is a hazard or causes impediment to navigation, or adversely affects safety of life or causes pollution.

Section 4 Declaration of inland water area into Zones.
(1) The State Government may, for the purposes of this Act, declare by notification any inland water area to be a “Zone” depending on the maximum significant wave height criteria specified in sub-section (2).

(2) For the purposes of sub-section (1), the State Government may classify the maximum significant wave height criteria into the following Zones, namely:—

(i) Zone 1 refers to the area (other than Zone 2 or Zone 3) where the maximum significant wave height does not exceed 2.0 metres;

(ii) Zone 2 refers to the area (other than Zone 3) where the maximum significant wave height does not exceed 1.2 metres; and

(iii) Zone 3 refers to the area where the maximum significant wave height does not exceed 0.6 metres.

Section 5 Administrative role of Central Government and State Governments.
(1) The Central Government may, by general or special order, direct that any power, authority or jurisdiction exercisable by it under, or in relation to any such provision of this Act, or the rules made thereunder, or as may be specified in the order allocating the duties, shall, subject to such conditions and restrictions as may be so specified, also be exercisable by the competent authority or by such other officer as may be specified in that order.

(2) On and from the date of issue of notifications or rules made by the Central Government under the provisions of this Act, the provisions shall,—

(a) uniformly apply in whole or in any part of India, as may be specified therein; and

(b) prevail over such notifications or rules, as the case may be, issued or made by the State Governments.

(3) The State Governments may, by notification, appoint one or more designated authorities within their respective jurisdiction for the purposes of exercising or discharging the powers, authority or duties conferred, by or under this Act and the rules made thereunder.

(4) Notwithstanding anything contained in sub-section (1) and section 6, the existing administrative authorities constituted under State Governments or Union territory Administrations may continue to be the designated authorities for the purposes of sub-section (3).

(5) The State Government may, for the purposes of implementing the various provisions of this Act and the rules made thereunder, by general or special order, direct that any power or authority conferred under this Act, subject to such conditions and restrictions as it may think fit, be exercised or discharged by the respective designated authorities or any officer or any other organisation or body.

(6) Save as otherwise provided in this Act, the State Government shall have the power to make rules and shall exercise the powers conferred on it, as provided by or under this Act.

(7) Notwithstanding anything to the contrary in this Act, for the purposes of administration of the non-mechanically propelled inland vessels, as specified in Chapter XVII, the Central Government shall have no powers of administration and shall only provide assistance to the respective State Government, on receipt of official request from such State Government.

Section 6 Competent authority.
The Inland Waterways Authority of India, constituted under section 3 of the Inland Waterways Authority of India Act, 1985 (82 of 1985) shall be the competent authority for the purpose of exercising or discharging the powers, authority or duties conferred, by or under this Act.

Section 7 Power to classify and categorise for purpose of survey.
(1) For the purposes of this Chapter, ---

(a) the classification of mechanically propelled vessels;

(b) the criteria for such classification; and

(c) the standards of design, construction, fitness and crew accommodation of such vessels,

shall be such, as may be prescribed by the Central Government.

(2) The State Government shall classify and categorise mechanically propelled inland vessels on the basis of criteria and standards referred to in sub-section (1).

Section 8 Construction, alteration or modification of mechanically propelled inland vessel.
(1) No person shall construct any mechanically propelled inland vessel, or alter or modify any mechanically propelled inland vessel so as to affect its strength, stability or safety, except with prior approval of the designated authority, in such manner as may be prescribed by the Central Government.

(2) The list of alterations or modifications referred to in sub-section (1), which would affect the strength, stability or safety of any mechanically propelled inland vessel, and the criteria therefor, shall be such as may be specified by the Central Government, by notification.

Section 9 Survey of vessels.
(1) The standard for type and periodicity of surveys for every mechanically propelled inland vessel shall be such as may be prescribed by the Central Government.

(2) The owner, operator, master or construction yard or any other applicant, as the case may be, shall submit a request for survey in such form and content as may be prescribed by the Central Government.

Section 10 Appointment and qualifications of surveyors.
(1) For the purposes of this Act, the State Government may, by notification, appoint officers or persons as surveyors of inland vessels and such surveyors shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

(2) The minimum criteria and qualifications for the appointment of surveyors, which the State Governments shall adopt in the appointment of surveyors, shall be such as may be prescribed by the Central Government.

Section 11 Powers of surveyors.
(1) On receipt of the application from the owner or master or construction yard for conducting survey, in such form and within such time as may be prescribed by the Central Government, the surveyor may board or enter and inspect a mechanically propelled inland vessel:

Provided that the surveyor shall not unnecessarily hinder the loading or unloading of cargo or; embarking or dis-embarking of passengers of the mechanically propelled inland vessel, or unnecessarily detain or delay her from proceeding on any voyage.

(2) The owner, operator, master and crew of the mechanically propelled inland vessel shall render the surveyor, all reasonable facilities for conducting survey, and all information with respect to such mechanically propelled inland vessel, and her machinery or any part thereof, and all equipment and articles on board, as he may require for the purposes of a survey.

Section 12 Grant of certificate of survey and procedures.
(1) On completion of survey of a mechanically propelled inland vessel, the surveyor shall forthwith issue the applicant, a declaration of survey, valid for such period and in such form, as may be prescribed by the Central Government.

(2) The State Government shall, if satisfied that all the provisions of this Act have been complied with in respect of a declaration submitted under sub-section (1), and on receipt of payment of fee, as may be prescribed by the State Government, issue a certificate of survey to the applicant.

(3) A certificate of survey granted under this section shall be in such form as may be prescribed by the Central Government, and shall contain a statement to the effect that all the provisions of this Act with respect to the survey of the mechanically propelled inland vessel and the declaration of surveyor have been complied with, and shall set forth such particulars or such other terms and conditions, as may be prescribed by the Central Government.

(4) The State Government may, by notification in the Official Gazette, delegate all or any of the functions assigned to it by the Central Government under this section:

Provided that no delegation shall be made to authorise the grant of a certificate of survey by the surveyor, who made the declaration of survey under sub-section (1).

Section 13 Provisional certificate of survey and its effect.
(1) On receipt of application and the fee from the owner or operator of any mechanically propelled inland vessel, the surveyor who conducted the survey, may grant a provisional certificate of survey extending the validity of the prevailing certificate of survey by endorsement, in such form and for such period, as may be prescribed by the Central Government.

(2) Any mechanically propelled inland vessel, which has been issued with a provisional certificate of survey or endorsement under sub-section (1), may proceed on voyage or use in service, temporarily, pending the issue of the certificate of survey, in such manner and subject to the conditions as may be prescribed by the State Government.

Section 14 Mechanically propelled inland vessels not to proceed without certificate of survey, and requirement of Zone to be specified in such certificate.
(1) No mechanically propelled inland vessel shall be used nor proceed on voyage, without a valid certificate of survey that shall provide or indicate among others, the Zone intended for operation or applicable voyage or service of such vessel.

(2) The certificate of survey shall have effect throughout India, unless otherwise specified therein and subject to such other conditions as may be specified by the competent authority.

(3) The certificate of survey shall be valid for such period as may be specified by notification by the Central Government and shall not be in force--

(a) after the expiration of the period specified in the certificate of survey; or

(b) after notice has been issued to cancel or suspend such certificate.

(4) Nothing in this section shall prevent the State Government from excluding a mechanically propelled inland vessel from the requirement under sub-section (1), on an application made by the owner or master of the vessel for permission to proceed on a voyage; during the interval between the date on which the certificate of survey expires and the earliest possible date of renewal.

(5) After cessation of a certificate of survey, a valid certificate of survey shall be obtained only after a fresh survey of the mechanically propelled inland vessel has been conducted by any surveyor appointed under this Act.

Section 15 Suspension and cancellation of certificate of survey.
(1) The State Government may suspend or cancel a certificate of survey, if it has reason to believe that—.

(a) the declaration of the surveyor of the sufficiency and good condition of the hull, engines or other machinery or of any of the equipment of the mechanically propelled vessel has been fraudulently or erroneously made; or.

(b) the certificate has otherwise been granted upon false or erroneous information; or.

(c) since the making of the declaration, the hull, engine or other machinery, or any of the equipment of the mechanically propelled vessel have sustained any material damage, or have otherwise become insufficient..

(2) The State Government shall issue the notice of suspension of certificate of survey to the owner, operator, master or construction yard by stating the errors to be rectified and conditions that have to be complied with by the owner, operator, master or construction yard within three months from the date of issuance of such notice, in such manner as may be prescribed by that Government..

(3) In the event of non-compliance of the notice of suspension by the owner, operator, master or construction yard within the period specified therein, the State Government shall record such noncompliance and shall issue the notice of cancellation of certificate of survey, which shall come into force with immediate effect.

Section 16 Delivery of expired, suspended or cancelled certificate of survey.
(1) The owner or master shall deliver the certificate of survey, which has expired or has been suspended or cancelled, to such officer as the State Government may, by notification in the Official Gazette, appoint in this behalf.

(2) The State Government shall record the details of the cancelled certificate in the book of registry maintained by the Registrar of Inland Vessels.

Section 17 Registration.
(1) Any mechanically propelled inland vessel, which is wholly owned by---

(a) a citizen of India; or

(b) a co-operative society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912); or

(c) a body established under any Act relating to co-operative societies for the time being in force in any State; or

(d) a company registered under the Companies Act, 2013 (18 of 2013); or

(e) a partnership firm registered under the Limited Liability Partnership Act, 2008 (6 of 2009); or

(f) any other body including a partnership firm, trust or societies established by or under any Central or State enactment and which has its principal place of business in India;

(g) any legal business combination, otherwise allowed under the existing commercial law for the time being in force in India, within the permissible foreign direct investment limits in the sector and having its principal place of business in India,

shall be registered under the provisions of this Act.

(2) A foreign vessel, other than vessels registered or obligated to register under the Merchant Shipping Act, 1958 (44 of 1958), chartered on bareboat charter-cum-demise by an Indian charterer, for the purposes of plying exclusively within inland waters, shall be registered under the provisions of this Chapter.

(3) The inland vessels registered under this Act may also be registered under the Merchant Shipping Act, 1958 (44 of 1958).

Explanation.---For the purposes of sub-section (2), "Indian charterer" shall mean a person referred to in clauses (a) to (g) of sub-section (1), who has chartered a vessel on bareboat charter-cum-demise contract.

Section 18 Requirement of certificate of registration.
(1) A mechanically propelled inland vessel required to be registered under this Chapter, shall not proceed on any voyage or be used for any service, unless it has a valid certificate of registration granted under this Act in respect thereof.

(2) Notwithstanding anything contained in sub-section (1), the authority appointed or authorised under this Chapter may—

(a) permit any mechanically propelled inland vessel, built at any place other than a port or place of registry, to make her first voyage through the inland waters to any such port or place for the purpose of registration; or

(b) permit the vessel registered under any law for the time being in force in India for which provisions have been made under this Act to conduct voyage within the inland waters; or

(c) permit any mechanically propelled vessel registered under such laws of countries other than India, which shall only be permitted to ply within the inland waters subject to compliance of such terms and conditions as may be prescribed by the Central Government.

Section 19 Owner or master to carry certificate of registration.
(1) The owner or master of an inland vessel shall carry a valid certificate of registration issued under this Chapter and shall make available for inspection, when demanded by the officers appointed by the State Government.

(2) The State Government or such other officer appointed or authorised under this Chapter may detain any mechanically propelled inland vessel required to be registered under this Act, until the respective owner, operator or master of such vessel furnishes a valid certificate of registration.

Section 20 Appointment of ports or places of registry and Registrars of Inland Vessels.
(1) For the purposes of this Chapter, the State Government may, by notification, —

(a) appoint ports or places of registry; and

(b) appoint Registrar of Inland Vessels at the said ports or places of registry, who shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

(2) A Registrar of Inland Vessels shall, in respect to the port or place of registry for which he is appointed, perform his functions as may be prescribed by the State Government.