The Inland Vessels Act, 2021

Summary of The Inland Vessels Act, 2021
Objective and Scope
• Purpose: Ensures safe, economical transportation in inland waters, promoting uniformity, safety, and pollution prevention.
• Extent: Applicable across India, with specific provisions for different vessel types.
Key Provisions
1. Registration
• Mandatory Registration:
• Authority: Registering authority of the State where the vessel is kept.
• Certificate of Registration:
• Validity: State-specific, but valid across other states without needing a fresh certificate.
• Transfer of Registry: Possible across states with application to the new state's registering authority, requiring delivery of the old certificate and issuance of a new one.
• Procedure (Section 19K):
1. Application to the new state's authority with the certificate.
2. Entry of particulars in the new register.
3. Issuance of a fresh certificate.
• Alterations and Updates (Section 19J): Mandatory reporting within a prescribed period for alterations, with potential for new registration or provisional updates.
• Change of Owner/Operator Address (Section 19L): Notification required within 30 days to the registering authority, with updates in the certificate.
2. Operational Compliance
• Prohibition Against Transfer of Ownership (Section 19M):
• Restriction: Transfer to persons in another State or outside India requires prior State Government approval.
• Procedure:
• Joint report by owner and transferee within 30 days.
• Forwarding certificate for updates.
• Pilotage and Safety: Emphasized with significant penalties for non-compliance.
3. Offences and Penalties
| Offence | Penalty | | --- | --- | | Unauthorized Transfer of Certificate | As per Act | | Failure to Report Alterations | As per Act | | Pollution/Other Offences | Fines (e.g., ₹50,000 for pollution) and/or Imprisonment |
4. Administrative and Judicial Aspects
• State and Central Government Roles: In rule-making, oversight, and judicial processes.
• Judicial Trials: Conducted by or above Magistrate of the First Class.
• Appeals (Section 19P): Against registration refusal, suspension, or cancellation to the State Government.
5. Additional Provisions
• Suspension of Certificates (Section 19N): For unfit vessels, with notification to the original authority if different.
• Cancellation of Registration (Section 19-0): For destroyed or permanently unfit vessels, upon owner's report and return of the certificate.
• Reciprocity (Section 19Q): For vessels from other countries, under Central Government notification.
Repeal and Savings
• Repeals Previous Act: With continuity for previous registrations and notifications unless inconsistent.

Legislative History:
The Inland Vessels Act, 2021

Source: India Code and Ministry of Ports, Shipping and Waterways Official Records

Short Title - The Inland Vessels Act, 2021
Act Number / Year - Act No. 24 of 2021
India Code Act ID - 202124
Introduced In - Lok Sabha
Presidential Assent Date -August 11, 2021
Official Gazette Publication - August 12, 2021
Enforcement Date - February 16, 2022 (Sections 1 and 106) and June 7, 2022 (Remaining core operational sections vide Ministry of Ports, Shipping and Waterways Notifications)
Nodal Ministry - Ministry of Ports, Shipping and Waterways

Precedent & Statutory Rationale
1. Limitations of the Archaic 1917 Framework:
o Prior to 2021, inland water transport in India was governed by the century-old Inland Vessels Act, 1917. This legacy framework lacked provisions for modern commercial shipping formats, inter-state operational consistency, advanced navigation technology, structured environmental safeguards, and unified vessel registration databases.
2. Unlocking the Potential of National Waterways:
o Grounded in national strategic objectives to develop low-cost, eco-friendly logistics, reduce freight costs, and promote seamless trade through India’s extensive river networks and national waterways, the legislation was enacted to create a uniform, transparent, and legally sound national regulatory regime.

Parliamentary Trajectory & Enactment
• Formulation: Developed and piloted by the Ministry of Ports, Shipping and Waterways under Union Minister Sarbananda Sonowal to overhaul the governance of inland water transport.
• Parliamentary Passage: Introduced in the Lok Sabha as the Inland Vessels Bill (Bill No. 99 of 2021) on July 22, 2021; passed by the Lok Sabha on July 29, 2021; and subsequently passed by the Rajya Sabha on August 2, 2021.
• Presidential Assent: Received formal Presidential Assent on August 11, 2021, entering the statute book as Act No. 24 of 2021.
• Enforcement: Brought into active operational force through phased notifications starting in February and June 2022.