Information presented in Parliament on Friday states that since 2016, the Center’s Shipbuilding Financial Assistance Policy has assisted Indian shipyards in securing orders for building ships from both local and foreign customers, totaling about Rs 10,500 crore.
Since the program’s launch, 39 shipyards have received a total of 313 orders. In a written response to a question in the Lok Sabha, Minister of Ports, Shipping, and Waterways Sarbananda Sonowal stated that these shipyards have received financial support of Rs 337 crore for the delivery of 135 vessels to domestic and international ship owners.
A number of domestic and international shipbuilding orders have been gained by public and private shipyards such as Cochin Shipyard Ltd., Chowgule Shipyard, Mazgaon Shipyard, and Garden Reach Shipbuilders & Engineers by taking use of the financial aid available through the initiative.
With regard to local and international shipbuilding orders, the strategy gives Indian shipyards an even playing field with respect to foreign shipyards. According to the government, this program aims to revitalize and promote India’s shipbuilding sector for contracts signed between 2016 and 2026.
Reduced local market for commercial shipbuilding, high financing costs, a tiny ancillary industry, low automation, and other factors are said to be limiting Indian shipyards’ competitiveness.
The government has launched a number of programs to promote national shipbuilding. These include building advanced dredgers as specialized vessels that are eligible to acquire more financial support, over and above the Rs 40 crore upper limit for non-specialized vessels, and expanding the financial aid system to wind farm installation vessels.
Reduced local market for commercial shipbuilding, high financing costs, a tiny ancillary industry, low automation, and other factors are said to be limiting Indian shipyards’ competitiveness.
The government has launched a number of programs to promote national shipbuilding. These include building advanced dredgers as specialized vessels that are eligible to acquire more financial support, over and above the Rs 40 crore upper limit for non-specialized vessels, and expanding the financial aid system to wind farm installation vessels.
Financial assistance of thirty percent is provided for vessels whose primary propulsion is provided by green fuels like hydrogen, methanol, or ammonia fuel cells. For vessels equipped with a hybrid propulsion system or with electric propulsion, twenty percent financial assistance is provided.
The government organizations in charge of shipbuilding and ship ownership are also encouraged to support indigenous shipbuilding by making sure local content complies with regulations. Ships costing less than Rs 200 crore must be purchased from Indian shipyards.
The Government has also provided infrastructure status to shipyards since 2016 making them eligible for cheaper long-term finance. This will enable the shipyards to reduce their cost disadvantage and invest in capacity expansion thereby giving a boost to the Indian shipbuilding industry, the minister added.
