Shipping Secretary T.K. Ramachandran has announced a ₹70,000 crore plan to revitalize India’s shipbuilding industry and reduce its heavy reliance on foreign vessels.
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Currently, a staggering 95% of India’s cargo is transported by foreign ships. This over-reliance poses a significant risk to the nation’s trade. The new plan aims to de-risk shipping and build a strong domestic fleet and maritime capacity.
Key Initiatives and Investments
The Union Cabinet has approved a comprehensive plan with two major components:
- Financial Assistance for Shipbuilding: A ₹45,000 crore scheme will provide subsidies of 15% to 25% to domestic shipbuilders. This is designed to close the cost gap between building a ship in India and buying one abroad, which is typically 15% to 20%. The higher subsidy is for larger and environmentally friendly ships.
- Maritime Development Fund (MDF): A ₹25,000 crore fund, with an initial allocation of ₹20,000 crore, has been established to tackle the lack of financing in the sector. The government will contribute 49%, with the rest coming from private equity, sovereign funds, and pension funds. This is projected to attract a total of ₹1.45 lakh crore in investments.
Building a Stronger Future
The plan also includes a dedicated ₹19,989 crore scheme to create two to three mega shipbuilding clusters across India. This will upgrade existing shipyards and expand the nation’s limited capacity.
To further boost private investment, the government has granted infrastructure status to certain large ships built or registered in India, making financing easier.
Ramachandran stated that this initiative has already sparked significant interest from international investors and shipbuilders in countries including the US, UK, Greece, Japan, and South Korea, signaling a new era for India’s maritime sector.
