The Union Ministry of Ports, Shipping and Waterways has released the Draft Coastal Shipping Licensing of Foreign Vessels Rules, 2026, proposing a comprehensive regulatory framework for permitting foreign-flagged vessels to operate in India’s coastal, EXIM and offshore maritime sectors.
The draft rules have been issued under the powers conferred by the Coastal Shipping Act, 2025, and have been published in the Gazette of India for public consultation .
Objective and Scope of the Draft Rules
The proposed rules aim to streamline and modernise the licensing regime for foreign vessels while safeguarding the interests of Indian shipping, promoting ease of doing business, and ensuring regulatory clarity. Once notified, the rules will apply to all foreign-flagged vessels engaged in coastal trade, import-export (EXIM) trade, global trade, and offshore operations involving Indian ports or coastal waters.
The draft clarifies that no foreign-flagged vessel shall engage in coastal trade in Indian coastal waters without obtaining a valid licence issued by the Director General of Shipping (DGS).
Licensing Requirement for Coastal and EXIM Trade
Under the draft framework, foreign vessels chartered or operated by Indian citizens, non-resident Indians, Indian companies, LLPs, cooperatives or other notified entities will require a licence to undertake:
- Coastal trade between Indian ports,
- Import or export voyages involving Indian ports,
- Global trade operations touching Indian ports, and
- Offshore services.
However, an exemption has been proposed for foreign vessels chartered by foreign nationals exclusively for operations outside India, where no Indian port is involved.
Digital Application Process via e-Samudra Portal
In a move aligned with the government’s digital governance initiatives, the draft rules provide for an online licensing process through the dedicated e-Samudra portal of the Directorate General of Shipping. Applicants will be required to submit detailed vessel particulars, charter details, compliance declarations and supporting certificates electronically. In case of portal unavailability, applications may be submitted offline with complete documentation.
Categorisation of Licences
The proposed rules classify licences based on both type and category. Licence types include voyage charter, time charter and contract of affreightment, while categories cover export, import, coastal, global and offshore operations. Any modification or extension of an existing licence will require a separate application, subject to prescribed limitations and fees.
Fees, Port Clearance and Verification
Licensing fees will be charged depending on the nature and duration of operations, as detailed in the schedules appended to the draft rules. Foreign vessels requiring a licence must present the valid licence to port authorities to obtain port clearance.
Before granting a licence, the DGS will verify compliance with Indian maritime laws, crew nationality norms, environmental and safety certifications, and the Right of First Refusal (ROFR) mechanism, which prioritises the availability of Indian-flagged and Indian-built vessels.
Suspension, Cancellation and Enforcement
The Director General of Shipping has been empowered to suspend, cancel or modify licences in cases of violation of licence conditions, non-compliance with applicable laws, or failure to pay penalties. The draft also provides for detention of vessels found violating statutory provisions, in accordance with port state control regulations
Compounding of Offences and Appeals
The draft rules lay down a structured mechanism for compounding offences and filing appeals against penalties imposed by adjudicating authorities. Applications for compounding or appeals must be filed in prescribed formats as set out in the schedules to the rules.
Public Consultation Invited
The Central Government has invited objections and suggestions from stakeholders within 30 days from the date the notification is made available to the public. Feedback may be submitted to the Ministry of Ports, Shipping and Waterways either in writing or via email, after which the draft rules will be finalised.
