The Mercantile Marine Department, Chennai was set up in 1929 to implement the first SOLAS Convention and Load Line Conventions. This Department was working directly under the Ministry till the establishment of the Directorate General of Shipping at Mumbai in 1949.

The main objectives of MMDs are to administer the various Merchant Shipping Laws and rules relating to Safety of ships and Life at Sea, Registration of Ships, Tonnage Measurement, Crew Accommodation, Surveys for Load Line, Safety Construction, Prevention of Pollution, Inquiries into Shipping Casualties and Wrecks, Surveys of Passenger Ships, Radio Equipment onboard, Inspection and Approval of Statutory Equipment for Life Saving and Firefighting Appliances, Global Maritime Distress and Safety Systems, Navigational Aids, Pollution Prevention Equipment, Port State Control Inspection, Examination and Certification of various grades of Certificates of Competency under MS Act and verification of ISPS and ISM compliance, etc. This department derives powers under section 8 of the Merchant Shipping Act, 1958.