Government's Bold Move to Boost Shipbuilding

In a significant push to promote domestic shipbuilding and meet the escalating demand, the Indian government is poised to roll out a massive support scheme worth over Rs 20,000 crore. This initiative marks the second phase of the Shipbuilding Financial Assistance Policy and aims to develop four greenfield shipbuilding and repair hubs within the next six years.

Strategic Locations Identified for Development

Four prime land parcels, each spanning 2,000-3,000 acres, have been earmarked in Odisha (Kendrapara near Paradip Port), Andhra Pradesh (Dugarajapatnam), Gujarat (Kandla), and Tamil Nadu (Tuticorin) for these ambitious projects.

Addressing the Growing Demand

With an estimated requirement of around 112 ships, costing approximately Rs 85,700 crore, to transport crude oil, petroleum products, LPG, LNG, and other essentials over the next five years, the domestic shipbuilding industry is under pressure. Currently, Indian shipyards can only produce 28 such ships, highlighting a significant gap that this scheme aims to fill.

International Collaborations and Future Prospects

The Andhra Pradesh government has already initiated discussions with Japan's largest shipbuilder, Imabari Shipbuilding Co, and two leading South Korean firms, HD KSOE and Hanwha Ocean, for the Durgarajapatnam project. With only eight large, seven medium, and 28 small shipyards currently operational in India, the potential for growth and becoming a global player in the shipbuilding industry is immense.

Financial Support on the Horizon

A proposal for creating a Rs 25,000 crore Maritime Development Fund is set to be presented to the Cabinet for approval. This fund is designed to provide crucial financial assistance to the shipping sector through equity and debt securities, further bolstering the industry's growth.