The Bill, which will replace the ordinance promulgated in September, has already received the Lok Sabha's approval.
Moving the Bill in the Upper House, the Health Minister said it would also ban online sales and advertising of e-cigarettes.
"The Bill is about prohibiting all commercial operations for the trade of e-cigarettes, which includes manufacturing, production, import, export, distribution, sale and advertising including online sales and advertising," he said.
Clarifying that e-cigarettes are not tobacco products, the Minister said it had significant harmful effects on health.
"E-cigarettes are not tobacco products and any comparison about their adverse health impacts with tobacco is misplaced. There is also no conclusive evidence to suggest that e-cigarettes are less harmful than conventional cigarettes. On the other hand, there is definitely emerging evidence all over the world that e-cigarettes have significant harmful effects on health," Vardhan said.