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Time of India
2 days ago
- Business
- Time of India
Shipping boost: Government to expand Maritime Development Fund to Rs 70,000 crore; eyes global shipbuilding rank
AI image 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 .
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Business Standard
2 days ago
- Business
- Business Standard
Govt raises Maritime Development Fund to ₹70,000 cr to spur shipbuilding
The Centre is significantly scaling up its proposed Maritime Development Fund (MDF) to ₹70,000 crore, 2.8 times the allocation announced in the February Budget, to boost shipbuilding, ship repair, ancillary industries, expansion of shipping tonnage, and port-linked infrastructure, according to a report by The Economic Times. 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.
Time of India
2 days ago
- Business
- Time of India
Govt to boost Maritime Development Fund to ₹70,000 crore, nearly triple budget allocation
Advt Advt By , ET Bureau The government is scaling up the proposed Maritime Development Fund (MDF) to ₹70,000 crore, 2.8 times the allocation in the February Budget, to support shipyards, ship repair, ancillaries, expand shipping tonnage, and port-linked infrastructure, multiple sources larger MDF was recently cleared by the Expenditure Finance Committee (EFC) headed by the Finance Ministry's Expenditure Secretary, a government official said. Cabinet approval is expected soon, the official said. The EFC reviews proposals involving over ₹500 crore to assess their financial viability and Ministry of Ports, Shipping and Waterways did not respond to a request for 2047, India's maritime sector will need investment between $885 billion and $940 billion, including $388 billion to boost shipping tonnage, $260 billion for green vessels, $224 billion for next-generation ports, $18 billion to emerge as a global shipbuilding and repair hub, $8.82 billion to increase coastal and inland shipping share, and $1.65 billion to promote cruise tourism, according to a government Maritime Development Fund will follow a blended finance model with 49 per cent concessional capital from the government, including contributions from state-owned major ports, to balance risk-return profiles of diverse investors and the balance 51 per cent commercial capital from multilateral/bilateral lenders and sovereign will support the financing needs of the entire maritime industry through long-term, low-cost financing comprising different classes of instruments with varying returns and growing maritime ambitions is likely to feature in Prime Minister Narendra Modi's Independence Day speech on Friday, a second source monsoon session of Parliament, which ended on August 12, was 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 new Indian Ports Bill cleared the Lok Sabha, replacing the 117-year-old Indian Ports Act, 1908."It's a landmark event," said TK Ramachandran, Ports Secretary. "This is just one example of the kind of transformation that is taking place in the maritime sector," he EFC also cleared a revamped 'Ship Building Financial Assistance' scheme, a credit note for shipbreaking in Indian yards, development of shipbuilding clusters and infrastructure status to large ships to implement the Budget financial assistance for building ships is proposed to be fixed at 15 per cent for normal ships with value up to ₹100 crore, 20 per cent for slightly advanced and specialised vessels of over ₹100 crore and 25 per cent for green granting infrastructure status to ships, a value-based - vessels costing ₹100 crore and above - criteria is set to be adopted, the official newly formed Sagarmal Finance Corporation Ltd, India's first maritime Non-Banking Financial Company (NBFC), will start lending in six months, he maritime ambitions comes at a time when top shipbuilding nations such as South Korea and Japan are sprucing up their strategy to win back market share ceded to China, now the world's biggest shipbuilder. South Korea, in fact, has proposed a shipbuilding project to the US during tariff negotiations, including huge investments in the US by Korean shipbuilders and financial support such as loans and guarantees to back President Donald Trump's slogan on "Make American Shipbuilding Great Again".On the other hand, China will complete a $16 billion merger of two state-owned shipyards this week to form the world's biggest shipbuilder, in a further bid to dominate ship construction globally. Last year, the shipyards being merged had some 17 per cent of the global market share with an order book of about 530 ships of 54 million deadweight tons capacity and annual revenues close to $ the policy prescriptions, India aims to break into the top 10 position globally in shipbuilding by 2030 and top 5 by 2047."India does not have the luxury to procrastinate," said Antony Prince, President and Chief Executive Officer at G T R Campbell Marine Consultants Ltd, a ship designing firm based in Nassau, capital of the Bahamas."India needs to build up infrastructure, expand shipbuilding capacity and shake up its banking industry to support Modi's bold shipbuilding targets," added Dr Ranjan Varghese, Chief Executive Officer at Hong Kong-based shipbuilding EPC company, Steel Ships.
