Chapter II PROHIBITION AND LICENCE FOR COASTING TRADE

(1) No vessel, other than an Indian vessel, shall engage in coasting trade in the coastal waters, except under a licence granted by the Director-General under section 4: Provided that the Director-General may, by order in writing, permit a vessel registered under the Inland Vessels Act, 2021 (24 of 2021), to engage in coasting trade to such extent and subject to such conditions, as may be specified in that order. (2) Whoever engages any person to undertake coasting trade shall ensure that such person does not violate the provisions of sub-section (1).

(1) Every application for the grant of a licence for coasting trade shall be made to the Director-General in such form, manner and on payment of such fee, as may be prescribed. (2) Before issuing a licence under this section, the Director-General shall take into consideration the following factors, namely:— (a) whether the applicant has previously held a licence that was cancelled; (b) whether the applicant has engaged in violation of any of the provisions of this Act prior to or during the period of pendency of his application; (c) citizenship of the crew; (d) build requirements of the vessel; (e) availability of vessels on the route; (f) licences granted to vessels for the same route; (g) safety, national and maritime security concerns; (h) equipment on board the vessel including communication equipment; (i) the Strategic Plan under section 8; (j) cost efficiency of transport; (k) validity of the certificates of vessel and crew; (l) validity of the certificate of insurance of the vessel; and (m) any other requirements as the Director-General may consider necessary in furtherance of the objectives of this Act. (3) A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may be prescribed: Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary for grant of the licence. (4) The class or category of licence to be granted under this section shall be such as may be prescribed.

Every vessel, including Indian vessels engaged in coasting trade, shall report to the Director-General the following information in such form and manner as may be prescribed, namely:–– (a) the port or ports which it will visit in the course of its voyage; (b) goods or passengers carried by such vessel and the ports or places where such goods or passengers will be dropped off; (c) any offshore area in which it may operate or navigate for the purposes of its voyage; and (d) such other information as the Director-General may deem fit.

(1) No proper officer shall grant clearance to a vessel, other than an Indian vessel, engaging in coasting trade to enter or depart from a port, unless the licensee or agent of such vessel produces the licence granted under section 4. (2) Where any vessel fails to comply with the requirements of this Act, the Director-General or the principal officer or an officer designated by the Central Government in this behalf may, after giving an opportunity of being heard to the licensee or agent of such vessel, by order in writing and for reasons to be recorded therein, detain that vessel until an order is issued for the release of such vessel.