Underwater marine inspections for ship hull or marine debris, etc. are one of the vital measures carried out to ensure the safety of marine structures and underwater species. This work details the design, development and qualification of a compact and economical observation class Remotely Operated Vehicle (ROV) prototype, intended for carrying out scientific research in shallow-waters. The ROV has a real-time processor and controller onboard, which synchronizes the movement of the vehicle based on the commands from the surface station. The vehicle piloting is done using the onboard Raspberry pi camera and the support of some navigation sensors like Global Positioning System (GPS), inertial, temperature, depth and pressure. This prototype of ROV is a compact unit built using a limited number of components and is suitable for underwater inspection using a single camera. The developed ROV is initially tested in a pool.