Cabinet boost for ship building industry
MUMBAI: The state government on Tuesday approved a policy for ship building and constructing a ship breaking yard in the state, which will be called 'Shipbuilding, Ship Repair and Ship Recycling Policy 2025'.
The state's sole ship breaking yard at Darukhana, in Mumbai, was closed between 2015-16, as it was contributing to pollution.
Speaking at a press conference in Mantralaya, ports minister Nitesh Rane said, 'The policy aims to transform Maharashtra into a major hub for shipbuilding and ancillary industries.'
To spearhead the policy, prime Minister Narendra Modi has sanctioned ₹25,000 crore as maritime development fund. Chief minister Devendra Fadnavis said, 'Each ship building yard can employ 50,000 to 60,000 persons and ship breaking yard 10,000 to 15,000 persons.'
According to a Central government report, which is referenced in the fine print of the policy, China contributes 50% to global shipbuilding, Japan 15%, South Korea 28% — together making up over 93% of the global output. India's share is less than 1%, putting it on 21st position globally in shipbuilding; in ship repair India 20th, but in ship recycling, it holds the second position worldwide, with 32.6% share.
To improve this, the central government's Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 aims to being the country in the top 10 slots. The state policy is based on Central government's blueprint.
India had two major ship breaking yards on the western coast: Darukhana in Mumbai (almost closed) and Alang in Gujarat. 'Despite great potential, the sector faces significant challenges, including, low labour productivity, lack of ancillary industries, and a major shortage of capital. Ship repair faces similar issues: like competition from foreign shipyards, limited capacities in Indian companies, and lack of advanced technologies,' said an official.
Sources said that setting up of such facilities will also include seeking permissions under Maharashtra Coastal Zone Management Authority, for 'ports and waterfronts to be optimally utilized', said an official.
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