Shipping boost: Government to expand Maritime Development Fund to Rs 70,000 crore; eyes global shipbuilding rank
The government is set to expand the proposed Maritime Development Fund (MDF) to Rs 70,000 crore, 2.8 times the allocation announced in the February Budget, to accelerate growth in shipbuilding, ship repair, port-linked infrastructure and shipping tonnage, ET reported, citing multiple sources.
The Expenditure Finance Committee (EFC), led by the finance ministry's expenditure secretary, has already cleared the proposal, with Cabinet approval expected soon.
According to ET, the MDF will adopt a blended finance model, with 49% concessional capital from the government, including contributions from state-owned major ports, and 51% commercial capital from multilateral and bilateral lenders, as well as sovereign funds.
It will offer long-term, low-cost financing to support the sector, using instruments with varying returns and terms to cater to diverse investors.
A government document estimates India's maritime sector will need $885–940 billion in investment by 2047, including $388 billion for shipping tonnage, $260 billion for green vessels, $224 billion for next-generation ports, and $18 billion to become a global shipbuilding and repair hub.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Discover Free Live TV Apps for Android [Try Now]
miszen
Learn More
Undo
The monsoon session of Parliament, which ended on 12 August, marked a 'watershed moment' for the sector, passing four major bills, the Merchant Shipping Bill, Coastal Shipping Bill, Carriage of Goods Bill, and Bills of Lading Bill, while the Indian Ports Bill cleared the Lok Sabha, replacing the 117-year-old Indian Ports Act.
'It's a landmark event,' ports secretary TK Ramachandran said, noting the transformation underway in the sector.
The EFC has also approved a revamped Ship Building Financial Assistance scheme, incentives for shipbreaking in Indian yards, development of shipbuilding clusters, and infrastructure status for large vessels. Subsidies are proposed at 15% for standard ships up to Rs 100 crore, 20% for advanced vessels over Rs 100 crore, and 25% for green ships.
India aims to break into the global top 10 in shipbuilding by 2030 and top 5 by 2047, competing with leaders like China, South Korea, and Japan. 'India does not have the luxury to procrastinate,' said Antony Prince, CEO of G T R Campbell Marine Consultants Ltd. Dr Ranjan Varghese of Steel Ships added that the country must 'build up infrastructure, expand shipbuilding capacity and shake up its banking industry' to meet Prime Minister Narendra Modi's ambitious targets.
Stay informed with the latest
business
news, updates on
bank holidays
,
public holidays
, current
gold rate
and
silver price
.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
14 minutes ago
- Mint
Did Swiggy increase their platform fee from ₹12 to ₹14? Report reveals...
Indian online food ordering and delivery company Swiggy has reportedly raised its platform fee from ₹ 12 to ₹ 14 ahead of the festive season. It was introduced for certain regions on 15 August amid increase in demand of orders; however, it will be reduced once the demand slows down, The Economic Times reported. A platform fee is a charge that a company like Swiggy, Zomato, or Uber adds to each transaction to cover the cost of maintaining and operating its platform. The platform fee of Rs14 per food delivery order is inclusive of Goods and Services Tax (GST), the ET report noted. It is reportedly a 600 per cent increase in just more than two years, NDTV reported. In comparison, Zomato applies a platform fee of ₹ 10, excluding GST. Swiggy was the first to introduce this fee in April 2023, starting at ₹ 2, and has gradually increased it to ₹ 12 (pre-GST) as part of its strategy to strengthen unit-level profitability. Zomato adopted a similar approach, though its most recent fee revision occurred in October 2024. While these fees represent a small portion of the typical ₹ 500– ₹ 600 order value seen on food delivery platforms, they significantly contribute to improving overall profit margins for the companies. As it ramps up investments in its Instamart vertical, Swiggy has reportedly increased its platform fee amid mounting financial pressure. The move comes during a quarter marked by a sharp rise in losses. In the April–June period, Swiggy's net loss soared to ₹ 1,197 crore, double the figure from the same quarter last year. The company also reported a net cash outflow of ₹ 1,053 crore after accounting for its operating, investing, and financing activities, ET report said. Despite the deepening losses, Swiggy saw a 54% year-on-year growth in operating revenue, which reached ₹ 4,961 crore. Amid this, new competition is emerging in the food delivery space. Ride-hailing firm Rapido has launched Ownly, its own food delivery platform, which is currently operational in select areas of Bengaluru, including Koramangala, HSR Layout, and BTM Layout. Ownly aims to challenge established players like Swiggy and Zomato by offering lower commission rates to restaurant partners between 8% and 15%, compared to the 16% to 30% typically charged by the incumbents. Zomato introduced five price hikes in less than two years, resulting in a 400% surge, NDTV report said. Amid the Swiggy-Zomato duopoly, with commission fees reaching as high as 35%, restaurant owners are left with little choice but to raise their menu prices. As a result, multiple surveys indicate that ordering food online now costs over 50% more than dining at the restaurant, the report added. has reached out to Swiggy for a statement. The story will be updated once received.
New Indian Express
2 hours ago
- New Indian Express
KMRL begins process to set up ballastless track
KOCHI: Speeding up the second phase of the 'Pink Line' project, Kochi Metro Rail Ltd (KMRL) has initiated the process to set up ballastless track of standard gauge in the elevated section from JLN Stadium station to Infopark Phase 2 station. It has invited open e-tenders online for Rs 127.91 crore for 'Design, Supply, Installation, Testing and Commissioning of Ballastless Track', a work that is aimed to be financed by availing a loan from the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB). The successful bidder should complete the work in 16 months from the date of the Letter of Award. The last date of tender submission is September 1, while the bids will be opened on September 9. The contract awardee can subcontract the work, limited to 50% of the contract price. The tender shall be valid for 180 days (both inclusive) from the last date of submission of tenders. Last week, KMRL floated open tenders for supply of a third rail traction system as well. The Phase 2 project involves the construction of an elevated, electrified metro rail system spanning 11.2km and comprising 11 stations along the JLN Stadium-Infopark section. While the original deadline was the end of 2025, it was revised to December 31, 2026, after the work suffered a delay due to a fund shortage and issues related to utility shifting. 'While the complete section is targeted to be completed by next year's end, we plan to open the first reach up to Padamughal by June 30, 2026. Hence, the successful bidder should complete the work in that session quickly by March 2026. It requires another three months for testing and other purposes,' a senior KMRL official said.
India Today
2 hours ago
- India Today
UPI to remove money request feature from October 1: What it means for you
Starting October 1, 2025, the way Indians use the Unified Payments Interface (UPI) will change. The National Payments Corporation of India (NPCI) has announced that it is retiring the money request option for person-to-person (P2P) transfers, a move intended to clamp down on scams that have increasingly targeted unsuspecting money request button was, at least on paper, a neat tool. Rather than awkwardly asking someone to send money, you could simply raise a request, whether for splitting the bill after dinner or reminding a forgetful friend about that Rs 500 they still owed. The recipient had the choice to approve or why this change? While the tool was neat, fraudsters quickly discovered a loophole. Fake requests became a common trick, and many people, thinking they were confirming a genuine payment, accidentally authorised transfers straight out of their accounts. NPCI's new directive leaves little room for ambiguity. From October 2, 'no P2P collect transaction should be initiated, routed or processed,' it said in a note to banks, payment service providers and UPI apps. Systems must be updated to block such requests doesn't mean UPI itself is getting harder to use. In fact, most features remain untouched. You can still:-- Send money instantly using a UPI ID, mobile number, or bank details.-- Scan a QR code to pay friends, family, or shopkeepers.-- Approve requests from verified merchants, such as delivery apps or online change applies solely to peer-to-peer collection requests. Merchant collection requests will continue, with their existing higher transaction caps. (Previously, P2P collection was limited to Rs 2,000 per request.)Safety over simplicityBy cutting off P2P collection, NPCI is removing what it sees as one of UPI's weakest security links. Approving a fraudulent request required little more than a careless tap, making it a favoured trick in online fraud kits.'The objective is to protect consumers and strengthen trust in UPI,' the organisation has said, framing the decision as a pre-emptive strike against rising fraud course, for genuine users, it does mean losing a shortcut. Instead of raising a request, you'll now have to ask for your share directly, either by sharing your UPI ID, generating a QR code, or simply dropping a payment reminder on has been India's digital payments crown jewel, handling billions of transactions every month. Its popularity rests on three things: speed, simplicity, and zero transaction costs. But that very simplicity has left it vulnerable to have tried everything from phishing texts and fake OTP requests to imitating bank officials. The collect request feature was just another arrow in their quiver. Removing it, NPCI argues, is about building resilience before the problem grows this means for usersadvertisementFor most people, little will change. Sending money will remain instant, free, and widely accepted. The only thing missing will be that polite nudge via UPI. It might be mildly inconvenient to craft your own reminder messages or share a QR code instead, but the trade-off is clear: fewer ways for fraudsters to trick people into parting with their future, then, is one of tightened safeguards, less about offering every possible shortcut, and more about ensuring every tap and swipe is secure.- Ends
