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 to govern the operation of foreign-flagged vessels in India’s coastal, EXIM and offshore maritime sectors.
Issued under the Coastal Shipping Act, 2025, the draft rules have been published in the Gazette of India and opened for public consultation. The proposed framework seeks to modernise and streamline the licensing regime for foreign vessels, while safeguarding Indian shipping interests, improving regulatory clarity and supporting ease of doing business.
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 clearly stipulates that no foreign vessel will be permitted to undertake coastal trade in Indian waters without a valid licence issued by the Director General of Shipping (DGS).
Licensing Scope and Exemptions
Under the proposed framework, foreign vessels chartered or operated by Indian citizens, non-resident Indians, Indian companies, LLPs, cooperatives or other notified entities will require a licence for:
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Coastal trade between Indian ports
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Import and export voyages involving Indian ports
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Global trade operations touching Indian ports
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Offshore maritime services
An exemption has been proposed for foreign vessels chartered by foreign nationals for operations conducted entirely outside India, with no involvement of Indian ports.
Digital Licensing via e-Samudra
In line with the government’s digitalisation push, applications for licences will be processed online through the e-Samudra portal of the Directorate General of Shipping. Applicants must submit vessel details, charter agreements, compliance declarations and supporting certificates electronically. Offline submissions will be permitted only in cases of portal unavailability.
Licence Categories and Fees
Licences have been categorised by type—including voyage charter, time charter and contract of affreightment—and by operation category, such as export, import, coastal, global and offshore. Any amendment or extension to an existing licence will require a fresh application, subject to prescribed fees and conditions.
Licensing fees will vary based on the nature and duration of operations, as outlined in the schedules to the draft rules. A valid licence must be presented to port authorities to obtain port clearance.
Compliance, Enforcement and ROFR
Before granting a licence, the DGS will verify compliance with Indian maritime laws, crew nationality requirements, environmental and safety standards, and the Right of First Refusal (ROFR) mechanism, which prioritises the deployment of Indian-flagged and Indian-built vessels.
The draft empowers the DGS to suspend, cancel or modify licences in cases of non-compliance, violation of licence conditions or non-payment of penalties. Provisions have also been included for the detention of vessels violating statutory requirements under port state control regulations.
Appeals and Public Feedback
A structured mechanism for compounding of offences and filing appeals against penalties has been laid out, with prescribed formats included in the schedules.
The Central Government has invited objections and suggestions from stakeholders within 30 days of the notification’s publication. Feedback can be submitted to the Ministry of Ports, Shipping and Waterways in writing or via email, following which the draft rules will be finalised.
