India Launches Ambitious Shipbuilding Initiatives
In a significant step towards enhancing its maritime capabilities, the Indian government has unveiled new guidelines for two major shipbuilding projects, with a combined investment exceeding ₹44,700 crore. The Union Ministry of Ports, Shipping, and Waterways aims to bolster the domestic shipbuilding industry and elevate India’s global competitiveness through these initiatives. The schemes, known as the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS), are set to transform the maritime landscape.
Investment and Financial Assistance Details
The Shipbuilding Financial Assistance Scheme (SBFAS) will establish a substantial fund of ₹24,736 crore to support the development of various types of ships. Financial assistance will range from 15% to 25%, depending on the category of the vessels, which includes small, large, and specialized ships. This funding will be disbursed in phases, contingent upon the achievement of specific milestones.
In addition, the Shipbuilding Development Scheme (SbDS) has been allocated ₹19,989 crore, focusing on enhancing infrastructure, technology, and skill development to meet future demands. To ensure effective implementation of these schemes, the government plans to establish a National Shipbuilding Mission. This mission will facilitate coordination and transparency throughout the process, ensuring that the objectives of these initiatives are met efficiently.
The introduction of these schemes is expected to significantly boost the shipbuilding sector, with projections indicating that SBFAS could support projects worth approximately ₹96,000 crore over the next decade. This investment is anticipated to create numerous job opportunities within the maritime industry, further strengthening India’s economic landscape.
Promoting Sustainability and Innovation
In a bid to promote sustainability, the government has also introduced a new incentive for shipowners who choose to scrap old vessels in India. Under this initiative, shipowners will receive a credit note equivalent to 40% of the scrap value, encouraging the recycling of outdated ships and fostering the construction of new ones. This move is expected to enhance the circular economy within the maritime sector.
India Revamps Ship Building Assistance Policy to Boost Local Content
The government’s plans include the establishment of new greenfield shipbuilding clusters and the modernization of existing shipyards. The India Ship Technology Centre will be set up at the Indian Maritime University, focusing on research, design, innovation, and skill development. Greenfield clusters will receive full capital support for shared infrastructure, while existing shipyards can access up to 25% funding for expansion projects.
With these advancements, India’s shipbuilding capacity is projected to reach an impressive 4.5 million gross tons per annum by 2047, positioning the nation as a formidable player in the global maritime industry.
