Government set to float 20,000 crore scheme to boost shipbuilding

NEW DELHI: In a push to promote domestic shipbuilding and meet the growing demand, government is set to provide support of over Rs 20,000 crore for rollout of the second phase of Shipbuilding Financial Assistance Policy and developing four greenfield shipbuilding and repair hubs in the next six years.

For shipbuilding and repair hubs, four land parcels of 2,000-3,000 acres each, have been identified in Odisha (Kendrapara near Paradip Port), AP (Dugarajapatnam), Gujarat (Kandla) and TN (Tuticorin) for developing the greenfield shipbuilding and repair hubs, TOI has learnt.

The thrust on shipbuilding comes amid a requirement of around 112 ships (estimated cost Rs 85,700 crore) for carrying crude, petroleum products, LPG, LNG, black oil, bitumen and other products in the next five years. Domestic shipyards are capable of producing only 28 such ships.

"So, considering the domestic demand, it's the right time to roll out the scheme for developing new shipbuilding hubs. There is also a direction to the petroleum and natural gas ministry to put out tender for 10 medium range tankers in May itself," said a source.

Andhra Pradesh govt has held discussions with Imabari Shipbuilding Co, Japan's largest shipbuilder, and two South Korean majors - HD KSOE and Hanwha Ocean - for the project proposed at Durgarajapatnam. At present, India has only eight large, seven medium and 28 small shipyards. "There is a huge potential to create capacity to meet domestic demand and also to become a major global player in the next few years," an official said.

Officials said a proposal of creating a Rs 25,000 crore Maritime Development Fund would be placed before the Cabinet for approval. The fund will provide financial assistance to the shipping sector through equity and debt securities.

Stay informed with the latest business news, updates on bank holidays and public holidays.

AI Masterclass for Students. Upskill Young Ones Today!– Join Now