&w=3840&q=100)
Govt raises Maritime Development Fund to ₹70,000 cr to spur shipbuilding
The revised corpus has reportedly already secured clearance from the expenditure finance committee (EFC), chaired by the finance ministry's expenditure secretary, with Cabinet approval expected shortly.
MDF blended finance model
The MDF will operate on a blended finance model: 49 per cent concessional capital from the government, including contributions from state-owned major ports, and 51 per cent commercial capital from multilateral and bilateral lenders as well as sovereign funds.
When announced in February, Finance Minister Nirmala Sitharaman said the fund would provide long-term, low-cost capital across the maritime value chain. By 2030, it is projected to generate ₹1.3–1.5 trillion in direct and indirect investment and create up to 1.1 million jobs.
Massive investment needed by 2047
Government estimates peg India's maritime sector investment requirement between $885 billion and $940 billion by 2047, The Economic Times report said. This includes:
$388 billion to expand shipping tonnage
$260 billion for green vessels
$224 billion for next-generation ports
$18 billion to position India as a global shipbuilding and repair hub
$8.82 billion to raise coastal and inland shipping's share
$1.65 billion to boost cruise tourism
India is targeting a top-10 global ranking in shipbuilding by 2030 and a top-five position by 2047, competing with South Korea, Japan, and China — the latter recently completing a $16-billion merger of two state-owned shipyards to cement its lead in global ship construction.
Legislative push
The monsoon session of Parliament, which concluded on August 12, saw the passage of four major legislations — the Merchant Shipping Bill, Coastal Shipping Bill, Carriage of Goods Bill, and Bills of Lading Bill — alongside the Lok Sabha's clearance of the Indian Ports Bill, replacing the 117-year-old Indian Ports Act, 1908.
The EFC has also endorsed a revamped 'Ship Building Financial Assistance' scheme, a credit note mechanism for shipbreaking in Indian yards, the development of shipbuilding clusters, and infrastructure status for large ships, aligning with Budget announcements. Assistance levels are proposed at 15 per cent for standard vessels up to ₹100 crore, 20 per cent for advanced or specialised ships above ₹100 crore, and 25 per cent for green ships. Infrastructure status will apply to vessels costing ₹100 crore and above.
Focus on Northeast
In July, the government announced ₹5,000 crore in initiatives to strengthen waterways and maritime connectivity in the Northeast. These include ₹1,000 crore in inland waterway projects, with ₹300 crore completed and the rest due by 2025, new cargo terminals, heritage restoration, tourist jetties worth ₹299 crore, and 85 community jetties.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
32 minutes ago
- India Today
Real wallet-friendly shake-up: GST 2.0 to feel like ‘Good and Simple Tax'
The government is all set to roll out GST 2.0 with a major rate rationalisation, aimed at simplifying taxation and reducing the burden on consumers. After 195 days of work behind the scenes, the Finance Ministry is ready with a leaner and cleaner GST structure that promises lower prices across Minister Narendra Modi dropped the first hint during his Red Fort address, calling it a 'Diwali Bonanza.' Sources revealed that the Finance Ministry began working on the rationalisation plan the very day the Budget was announced, on February 1, WILL CHANGE FOR CONSUMEREveryday essentials such as food, clothes, and biscuits will now attract just 5 percent GST. In fact, 99 percent of items in the 12 percent slab are shifting to 5 percent, while 90 percent of goods under the 28 percent slab will move to 18 means household appliances like refrigerators, televisions, and other aspirational goods will now be taxed at 18 percent instead of 28 percent, directly boosting savings for middle-class EVERYTHING TO GET CHEAPOn the flip side, tobacco and masala products will face the maximum legal cap of 40 percent GST. Officials underline that the law does not allow the rate to exceed 40 percent under any SIMPLER SYSTEMThe revamp focusses on rationalising slabs, widening the tax net, and fixing inefficiencies. By lowering rates, widening coverage, and cutting complications, GST 2.0 is designed to live up to its original the rollout goes as planned, this overhaul may make GST feel like: 'Good and Simple Tax'.- Ends advertisement
Indian Express
2 hours ago
- Indian Express
Centre set to table Jan Vishwas 2.0 in Lok Sabha: First-time offenders to get ‘Improvement Notice', not penalty
The Centre is set to introduce the Jan Vishwas Bill (Amendment of Provisions) Bill, 2025 in Lok Sabha Monday, which among dozens of changes in various laws will have a new concept of 'improvement notice' instead of penalty for first offence, The Indian Express has learnt. The Bill, cleared by the Union Cabinet earlier this week, is aimed at amending certain enactments for decriminalising and rationalising offences to enhance trust-based governance for ease of living and doing business. In her Budget speech on February 1, 2025, Union Finance Minister Nirmala Sitharaman had promised to bring in Jan Vishwas 2.0. 'In the Jan Vishwas Act 2023, more than 180 legal provisions were decriminalised. Our government will now bring up the Jan Vishwas Bill 2.0 to decriminalise more than 100 provisions in various laws,' she had said. In the proposed Bill, it is learnt that a new provision has been added to define the 'improvement notice' and to make it applicable to multiple sections. This marks a shift from the 'penalise on first detection' approach of Jan Vishwas 1.0 (enacted into law in 2023) to an 'inform–correct–penalise' model in Jan Vishwas 2.0 (the 2025 Bill) and aligns with the government's objective of promoting ease of doing business and trust-based regulation, while maintaining deterrence for repeated violations, said a source. As per the proposed amendments, no penalty will be imposed for first offence and an improvement notice will be served instead, giving an opportunity to rectify the non-compliance within a stipulated period, it is learnt. Penalties apply from second offence onwards, and the amount will be the same as it was for first offence in Jan Vishwas 1.0. Fines will increase for subsequent offences, subject to a maximum cap depending on the Sections. This structure retains full decriminalisation while adding a formal improvement notice mechanism to encourage voluntary compliance before financial sanctions are applied, thereby reducing fear of punitive action for minor, unintentional mistakes, said a source. In his Independence Day speech Friday, Prime Minister Narendra Modi said, 'In our country, there are such laws that can put people in jail for very small things — you would be shocked. No one has really paid attention to them. I have been pursuing this, because these unnecessary laws that put our country's citizens behind bars should be abolished. We had introduced a Bill in Parliament earlier, and we have brought it again this time.' Earlier the government had enacted the Jan Vishwas (Amendment of Provisions) Act, 2023, to decriminalise several offences under various laws. For instance, Section 41 of the Food Corporations Act, 1964 was omitted by the Act. As per the original provisions of Section 41, the use of FCI's name in any prospectus or advertisement without its consent in writing, was punishable with imprisonment for a term which may extend to six months, or with fine which may go up to Rs 1,000, or both. However, it was removed by the Jan Vishwas Act. Similarly, the provision of imprisonment up to 6 months was removed from the Section 33 of the Indian Forest Act, 1927 for tree felling or damage caused by cattle in protected forests, and Rs 500 fine was kept.
Economic Times
5 hours ago
- Economic Times
Ukraine needs peace not pause between Russian invasions, Zelenskiy says
(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates.
