The Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal said that the shipbuilders of Japan and South Korea are keen to invest in India’s emerging shipbuilding industry. This interest may take the form of direct investments, joint ventures, or technology transfer, bringing global expertise and capital infusion into the shipbuilding sector of the country.
Following the MSDC meeting, Sonowal said that the ministry will initiate various shipbuilding clusters in cooperation with the coastal states. “The ministry has a clear idea regarding development. It expects 2-3 clusters to come on the operation in the next decade and the rest of the 1-2 clusters would follow up within the next five years,” Sonowal told Business Standard in an interview.
India currently holds a minuscule 0.06 percent share in global shipbuilding, ranking 20th around the world, even as China, South Korea, and Japan corner 85 percent of the global share. For this, the government plans to build strategic shipbuilding infrastructure with the help of a ₹30,000 crore Maritime Development Fund.
The ministry is equally working with states to aggregate huge parcels of land with sufficient waterfront and adequate channel depth so vital for shipbuilding activities. Coastal states will soon unveil policies and packages of incentives to facilitate land aggregation, accelerate approvals, and fiscal advantages in terms of subsidies and tax breaks.
The push from the government has attracted state-run and private shipbuilding companies to line up to add operations. Among the leading players, Adani Ports and Special Economic Zone is also looking to join shipbuilding. Investments in dry docks and research centers, that are already shared among maritime companies, are also being made by the ministry, which will decrease the capital cost for the company and boost growth.
Sonowal said focus had been given to utilizing unused land, including states’ maritime boards and the ports. “We would reuse them for empowering enhancements in the industry. These steps can place us in a better position on the international front regarding shipbuilding. We will not have to purchase most vessels abroad,” he added.
