SF Prep Notes

Parliament clears Coastal Shipping Bill, 2025

The Rajya Sabha passed the Coastal Shipping Bill, 2025 on 7 August 2025, completing its passage through Parliament; the Bill replaces Part XIV of the Merchant Shipping Act, 1958 and aims to raise coastal cargo to 230 million tonnes by 2030.

Summary

The Coastal Shipping Bill, 2025 cleared Parliament on 7 August 2025 when the Rajya Sabha passed it; the Lok Sabha had passed it on 3 April 2025. Moved by Ports, Shipping and Waterways Minister Sarbananda Sonowal, the Bill replaces Part XIV of the Merchant Shipping Act, 1958 with a simplified licensing system for coastal shipping and a framework for regulating foreign vessels in coasting trade. It has six chapters and 42 clauses, mandates a National Coastal and Inland Shipping Strategic Plan and a National Database for Coastal Shipping, and is meant to help raise coastal cargo to 230 million metric tonnes by 2030. With it, the ministry has secured Parliament's approval for three maritime bills, along with the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2025.

Key facts

Rajya Sabha passed
7 Aug 2025
Lok Sabha passed
3 Apr 2025
Replaces
Part XIV of Merchant Shipping Act, 1958
Structure
6 chapters, 42 clauses
Mandates
National Coastal and Inland Shipping Strategic Plan; National Database for Coastal Shipping
Target
230 million metric tonnes coastal cargo by 2030
Coastline
11,098 km; 9 states and 4 UTs

Practice MCQs 4 questions

Q1

The Coastal Shipping Bill, 2025, which cleared Parliament on 7 August 2025, replaces which part of the Merchant Shipping Act, 1958?

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Correct answer: D — Part XIV

The Bill replaces Part XIV of the Merchant Shipping Act, 1958 with new legislation aligned with global cabotage norms.

Q2 Advanced

What coastal cargo target by 2030 did the Shipping Minister link to the Coastal Shipping Bill, 2025?

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Correct answer: B — 230 million metric tonnes

Sarbananda Sonowal said the legislation is central to increasing India's coastal cargo share to 230 million metric tonnes by 2030.

Q3 Advanced

Consider the following statements about the Coastal Shipping Bill, 2025: 1. It mandates the formulation of a National Coastal and Inland Shipping Strategic Plan. 2. It provides for a National Database for Coastal Shipping. Which of the above is/are correct?

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Correct answer: C — Both 1 and 2

Both statements are correct. The Bill mandates a National Coastal and Inland Shipping Strategic Plan and provides for a National Database for Coastal Shipping with real-time, regularly updated data.

Q4 Advanced

Consider the following statements about the Coastal Shipping Bill, 2025: 1. It was passed by the Rajya Sabha before the Lok Sabha. 2. It comprises six chapters and 42 clauses. Which of the above is/are correct?

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Correct answer: B — 2 only

Statement 1 is incorrect: the Lok Sabha passed the Bill first, on 3 April 2025, and the Rajya Sabha passed it on 7 August 2025. Statement 2 is correct: the Bill has six chapters and 42 clauses.

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