The Lok Sabha cleared a bill that seeks to regulate vessels engaged in trade within the Indian coastal waters, as Union minister Sarbananda Sonowal said it has been brought to give a fillip to maritime commerce.
The Union ports, shipping and waterways minister also assured the House that the Coastal Shipping Bill, 2024 is firmly grounded in the spirit of cooperative federalism and does not encroach upon the jurisdiction of any state. The Bill was passed in the Lower House by voice vote.
In his reply to the debate on the Bill, Sonowal termed it a very important legislation providing for a much-needed exclusive, strategic and futuristic law for optimal utilisation of nation’s immense, untapped potential in coastal shipping.
The minister said that the Bill has been drafted after a detailed analysis of the global best practices and dedicated law of major maritime countries like the US, Australia and Thailand.
Accordingly, the provisions of the Bill have been tailored based on the specific needs of the sector in India, he said.
The country, the minister explained, has a long coastline of over 11,098 km and more than 2.3 million square km of exclusive economic zone. Despite this massive coastal resource, successive governments have since Independence completely ignored and neglected this sector, he claimed.
The Bill has been brought to give a fillip to maritime commerce, he said, adding “this will make our entire coastal area more viable, promote seamless movement of ships, and generate employment and income”. Sonowal had moved the Bill for consideration and passage in the Lok Sabha on Tuesday.
The Bill seeks to promote coastal trade and encourage the participation of Indian-flagged vessels owned and operated by Indian citizens for national security and commercial needs.
Under the Bill, coastal waters mean territorial waters of India, along with adjoining maritime zones.
Chennai and Kamarajar ports cross 100 million mt of cargo throughput
Chennai port and its subsidiary Kamarajar port achieved a milestone in 2024-25 with the total cargo throughput exceeding 100 million tonnes (mt ) for the first time. Both together handled 103.37 mt during the fiscal ending March 31, 2025. The combined income from operations was ₹2,200 crore, Sunil Paliwal, Chairperson for Chennai Port Authority (ChPA) and also the Chairman of Kamarajar Port Ltd (KPL), said.
The Chennai port handled 54.96 mt while the Kamarajar port’s throughput was 48.41 mt . The handling represented a combined year-over-year (y-o-y) increase of 6.7 per cent, which was above the 6 per cent target fixed by the Union Shipping Minister, he told newspersons on Thursday. While the Chennai port recorded a 6.5 per cent growth in cargo handling during the last fiscal, Kamarajar port’s volume was up 6.9 per cent.
For the current fiscal, Paliwal expects the combined cargo volume to grow at around 7 per cent.
For the Chennai port, out of the total cargo handling, contribution from containers was 63.4 per cent followed by liquid bulk (27.7 per cent); dry bulk (5 per cent) and break bulk (4 per cent). In contrast, dry bulk contributed 56.9 per cent of Kamarajar port’s volume followed by container (27.2 per cent); liquid bulk (11.1 per cent) and break bulk (4.8 per cent), he said.
On the financial performance, Paliwal said the ChPA reported a net surplus of ₹81 crore on operating income of ₹1,088 crore with capex at ₹147 crore. During the year, it implemented a wage settlement and consolidation of pension with the total financial implication at ₹325 crore. There was also loan pre-payment and contribution to pension fund to the tune of ₹277 crore during the fiscal, he said. The KPL reported the highest net profit of ₹546 crore with the company’s networth reaching ₹3,040 crore, he said.
On the ₹1,424 crore multi modal logistics park constructed at Mappedu, Paliwal said the first phase is expected to be ready by February 2026. There is a strong focus on upgrading infrastructure, connectivity, capacity expansion and storage areas, he added.
The project was conceptualised 12 years ago but it did not kick off due to many hurdles, said Paliwal.
In October 2021, an MoU was signed between Tamil Nadu Industrial Development Corporation, National Highways Logistics Management Ltd and the Chennai Port Trust for the project.
Last year, the construction of India’s first Multimodal Logistics Park at Mappedu near Chennai was entrusted to Reliance Industries. It is located 52 km from the Chennai port, 80 km from Ennore Port and 87 km from Kattupalli Port. It will be a focal point of logistics in the southern region. It is estimated to cater to around 7.17 mt of cargo over 45 years.
On the development of the internal road network at Chennai port, Paliwal said in the first phase, the road widening and improvement works will be taken up between 2025 and 2028 at a cost of ₹54 crore.
