New Delhi, Aug 2 (IANS) The shipbuilding industry in India is undergoing a transformational shift, as the government under Prime Minister Narendra Modi accelerates efforts to build a world-class maritime ecosystem, according to Sarbananda Sonowal, Minister of Ports, Shipping and Waterways.

In line with the Maritime India Vision 2030 and the long-term strategic roadmap of Amrit Kaal, the Union Budget 2025 has announced a series of reforms and investments aimed at significantly enhancing the capacity and competitiveness of Indian shipyards.

“These initiatives are expected to strengthen India’s position as an emerging global maritime power,” Sonowal said at the ongoing monsoon session of the Lok Sabha.

Highlighting the government’s commitment, Sonowal underlined the “Shipbuilding Financial Assistance Policy which is being revamped to address cost disadvantages,” thereby helping Indian shipyards compete on equal footing with their international counterparts.

The inclusion of credit notes for ship breaking in Indian yards reinforces the push towards a circular and sustainable maritime economy.

To boost infrastructure financing, large ships above a specified size will now be classified under the Infrastructure Harmonised Master List, making them eligible for long-term, low-interest funding.

Simultaneously, the government will facilitate the development of integrated shipbuilding clusters, equipped with modern infrastructure, skill development centres, and advanced technologies. This, the Budget notes, is aimed at “increasing the range, categories and capacity of ships” built in India.

In a landmark move to address the industry’s need for long-term capital, the government has proposed a Rs 25,000 crore Maritime Development Fund, with up to 49 per cent government contribution. This fund will mobilise private and port-led investments to expand and modernise India’s shipbuilding and repair capabilities.

Recognising the long gestation nature of the industry, tax exemptions on Basic Customs Duty (BCD) for raw materials and components used in shipbuilding and ship-breaking have been extended for another 10 years.

“Our commitment to empower and enable our maritime sector is absolute and it is with this intent we are working under the dynamic leadership of PM Modi,” said Sonowal.

To give Indian shipbuilders a competitive edge in public procurement, the government has extended the Right of First Refusal (ROFR) for tenders floated by public sector units. As per the Public Procurement (Preference to Make in India) Order 2017, vessels valued under Rs 200 crore must be procured from Indian yards, thereby reinforcing the goal of self-reliance in maritime assets.

On the ship repair front, Cochin Shipyard Limited has inaugurated a Rs 970 crore International Ship Repair Facility (ISRF) in Kochi.

—IANS

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