The Indian government is taking big steps to strengthen its domestic shipbuilding industry. Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal, recently shared several industries aimed at promoting local shipbuilding, encouraging modern technology, and encouraging environmentally friendly practices.
Currently, India has a shipping fleet of 1,552 vessels with a total capacity of 13.65 million Gross Tonnage. To promote more shipbuilding in India, the government has introduced financial support for building advanced and eco-friendly ships. Under the Shipbuilding Financial Assistance Policy (SBFAP), specialized vessels like wind farm installation ships and advanced dredgers can now receive higher financial aid. Additionally, vessels that use green fuels like methanol, ammonia, or hydrogen fuel cells can get up to 30% financial assistance. Ships with electric or hybrid propulsion systems are eligible for 20% assistance.
The government has set aside ₹4,000 crore under the SBFAP for shipbuilding contracts signed between 2016 and 2026, with ₹385.16 crore already used to date.
Here are some key steps the government is taking to support the industry:
- Encouraging Local Shipbuilding: Ships costing less than ₹200 crore must be purchased from Indian shipyards as part of the Make in India initiative.
- Infrastructure Status for Shipyards: Indian shipyards have been given "infrastructure status," allowing them to access cheaper long-term loans, reduce costs, and expand their facilities.
- Priority for Indian Ships: Indian-built and Indian-flagged ships are given preference in tenders and charters through a “Right of First Refusal” system. This ensures that Indian shipbuilders and shipping companies have a competitive edge over foreign players.
- Subsidies for Indian Shipping Companies: A subsidy of ₹1,624 crore over five years has been approved to help Indian shipping companies compete in global tenders. So far, ₹213.54 crore has been disbursed.
- Green Technology Push: The government has launched initiatives like the Green Tug Transition Programme (GTTP) and Harit Nauka guidelines to encourage the use of environmentally friendly technologies in coastal and inland vessels. These efforts aim to reduce carbon emissions and promote sustainability in shipping.
The government has also introduced standardized methods for tugs at major ports and issued guidelines for fair tendering processes to support Indian shipyards.
These standards reflect India’s dedication to becoming self-reliant in shipbuilding while adopting sustainable practices. With these policies, the government hopes to not only meet domestic demands but also position India as a key player in the global shipbuilding market. (PR)