Latest news with #MaritimeDevelopmentFund
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.
Time of India
3 days ago
- Business
- Time of India
Govt to boost Maritime Development Fund to ₹70,000 crore, nearly triple budget allocation
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 said. Independence Day 2025 Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji gave India its own currency Swadeshi 2.0: India is no longer just a market, it's a maker The 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 impact. The Ministry of Ports, Shipping and Waterways did not respond to a request for comment. By 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 document. The Maritime Development Fund will follow a blended finance model with 49% concessional capital from the government, including contributions from state-owned major ports, to balance risk-return profiles of diverse investors and the balance 51% commercial capital from multilateral/bilateral lenders and sovereign funds. Live Events It 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 terms. India's growing maritime ambitions is likely to feature in Prime Minister Narendra Modi's Independence Day speech on Friday, a second source said. The 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 added. The 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 announcements. The financial assistance for building ships is proposed to be fixed at 15% for normal ships with value up to ₹100 crore, 20% for slightly advanced and specialised vessels of over ₹100 crore and 25% for green ships. For granting infrastructure status to ships, a value-based - vessels costing ₹100 crore and above - criteria is set to be adopted, the official said. The newly formed Sagarmal Finance Corporation Ltd, India's first maritime Non-Banking Financial Company (NBFC), will start lending in six months, he added. Modi's 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 U.S. during tariff negotiations, including huge investments in the U.S. 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% of the global market share with an order book of about 530 ships of 54 million deadweight tons capacity and annual revenues close to $18billion. With 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.
Time of India
3 days ago
- Business
- Time of India
PM Modi's I-Day speech likely to harp on maritime powerplay including a MDF of ₹70,000 crore
Advt Advt By , ETInfra Prime Minister Narendra Modi will likely use his Independence Day speech from the ramparts of the historic Red Fort on Friday to tell the nation, among other things, about the steps taken by his government to bolster the maritime sector, including a Maritime Development Fund of ₹70,000 crore, which is 2.8 times more than what was announced in the could be the first time that the maritime sector will likely find a mention in the customary Independence Day speech of a Prime Minister, underscoring the importance the government attaches to this critical industry, now a battleground for many nations, including the US, as they seek ways to slacken China's vice-like grip over a large swathe of shipping Modi government's Finance Minister Nirmala Sitharaman has already set the ball rolling for what is to come with her announcements in the February Budget speech on a ₹25,000 crore Maritime Development Fund ( MDF ), a revamped shipbuilding financial assistance policy, credit note for shipbreaking in Indian yards, development of shipbuilding clusters and infrastructure status to large months of detailed inter-ministerial consultations, the Expenditure Finance Committee (EFC) headed by Secretary (Expenditure) in the Ministry of Finance, has recently approved a revised proposal, including an enhanced MDF of ₹70,000 crore, to implement the Budget announcements. 'The EFC minutes have been approved for the proposals. It will be cleared by the Union Cabinet soon,' said an proposals will be taken up by the Cabinet in the days following Modi's Independence Day speech, said a source with knowledge of the the revamped scheme, financial assistance for building ships will 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 the proposed ship recycling credit note scheme, a credit note equivalent to 40 per cent of the scrap value of a ship being dismantled in an Indian ship breaking yard would be given to a fleet owner – both Indian and global - with the credit note being reimbursable against the cost of construction of a new vessel at an Indian infrastructure status to ships, a value-based - vessels costing ₹100 crore and above - criteria is set to be adopted.'The ₹25,000 crore MDF announced in the Budget would not have been adequate when you are looking at a quantum leap in all aspects of the maritime industry,' said an industry Modi is also expected to highlight the passage of four key maritime related Bills in the monsoon session of Parliament which concluded on August 12, including a new Merchant Shipping Bill, Coastal shipping Bill, The carriage of Goods Act Bill, the Bills of Lading Bill (all passed by both houses of Parliament) and the Indian Ports Bill (passed by the Lok Sabha).'This is a landmark event in the history of the maritime sector and the Ministry,' T K Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways said in Mumbai on August 12. 'This is just one example of the kind of transformation that is taking place in the maritime sector,' he Ministry has taken up a series of projects which are critical to the country, be it on policy or legal framework.'The government is working on all aspects, not only on ports. Now, the focus is shifting towards shipping and shipbuilding where the Ship Building Financial Assistance Scheme is being extended for the next ten years, which is also in the final shape for the consideration of the government,' R Lakshmanan, Joint Secretary, Ministry of Ports, Shipping and Waterways said in Mumbai on August 12. India needs $18 billion to become a global player in shipbuilding, ship repair and ancillary industries, according to a government document. While another $388 billion is required to expand India's shipping tonnage and $260 billion for enhancing green Maritime Development Fund will be structured on 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 will come from multilateral/bilateral institutions and other investors such as sovereign MDF will support the financing needs of the entire maritime industry including ports, shipping, shipbuilding and inland water transport through long-term, low-cost financing comprising different classes of instruments with varying returns and terms.'We are also coming up with a scheme for supporting the development of new shipbuilding clusters as well as supporting the existing shipbuilding industry in terms of providing them support for expansion. Besides, infrastructure status will make long term financing attractive and cheap for shipping,' Lakshmanan newly formed Sagarmal Finance Corporation Ltd, India's first maritime Non-Banking Financial Company (NBFC), will start lending to maritime companies and ventures in six months, he maritime ambitions for India 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 $18billion, according to media reports.'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 cited several factors that are delaying the performance of Indian shipbuilders. These include finance, design, material and equipment, skilled shipyard managers and workers. 'These problems cannot be solved overnight; it requires a steady build-up of infrastructure,' he Ranjan Varghese , Chief Executive Officer at Hong Kong-based shipbuilding EPC company, Steel Ships, said that India has to 'shake up' its banking industry to support Modi's bold shipbuilding targets.'Basically, India needs to build up infrastructure, shipyards and shipbuilding capacity. That is the key,' Dr Varghese stated.A fundamental thing that China did years ago was to empower its banks to finance ships.'Chinese banks are so powerful now that they pretty much own some 90 per cent of the global ships. Western banks are not financing ships like they used to earlier after the 2008 financial crisis. That's when China decided to own and fund ships. If India has to do that, money is the only thing that makes the difference. Lot of things have to change in India, such as deleveraging banks and lending structure,' Dr Varghese according to him, is a highly capital-intensive business. 'Without finance, nobody is going to build ships. So, India needs finance as well as home grown ship owners. Unfortunately, we don't have very many ship owners. What China did, they created in-house ship owners, all government companies, such as COSCO. If India doesn't want government companies, at least promote private firms, give them loans and ask them to build ships in India,' Dr Varghese opined.'Lack of proper policy and tax issues makes Indian yards sluggish and low on self-confidence. Besides, India doesn't have big shipyards; that is another issue. Nobody wants to pay money and wait for years to get delivery of a ship, the maximum they can wait is 2-3 years, they are not going to wait for 5-6 years. So, India should focus more on building shipyards and encourage banks to lend to the shipping industry,' Dr Varghese these concerns are about to change with the policy thrust and direction given by the government as it looks to break into the top 10 position globally in shipbuilding by 2030 and top 5 by 2047.'It's a good start in a way,' Dr Varghese acknowledged.
Korea Herald
06-07-2025
- Business
- Korea Herald
HD Hyundai teams up with India's Cochin Shipyard to bolster global reach
HD Korea Shipbuilding & Offshore Engineering, the shipbuilding arm of HD Hyundai, said Sunday that it has signed a comprehensive memorandum of understanding with India's largest state-owned shipbuilder, Cochin Shipyard Limited, marking a major step in expanding its footprint in the world's most populous market. Located in the southern Indian state of Kerala, CSL is majority-owned by the Indian government and has acquired a reputation for its capabilities in building and maintaining a wide range of vessels, from commercial ships to aircraft carriers. Over the past five years, CSL has successfully delivered 70 ships. The agreement includes long-term cooperation in areas such as ship design support, equipment supply, technical collaboration and workforce training. The two parties will boost CSL's productivity and global competitiveness while opening up joint opportunities for vessel orders in both India and abroad. This collaboration aligns with India's national maritime initiatives, including the Maritime India Vision 2030 and Amrit Kaal Vision 2047. India is actively investing in its maritime sector, including a 250 billion rupee ($2.92 billion) Maritime Development Fund launched this year. India's shipbuilding market has surged more than 12-fold since 2022 and is expected to grow over 60 percent annually through 2033, according to market research firm Ken Research. 'This bilateral partnership is a critical move to strengthen our influence in the fast-growing Indian market and to support domestic equipment suppliers in expanding overseas,' said an HD KSOE official.
Business Standard
04-07-2025
- Business
- Business Standard
Cochin Shipyard signs MoU with HD KSOE, South Korea
HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE), South Korea has signed a Memorandum of Understanding (MOU) with Cochin Shipyard (CSL) on 04 July 2025. The MOU is intended to facilitate cooperation between the two companies in the following areas: (i) Joint exploration of newbuilding opportunities in India and abroad; (ii) Sharing of technical expertise to scale up the global standards in shipbuilding; (iii) Identification of initiatives to enhance productivity and capacity utilization; (iv) Joint efforts to upskill and strengthen workforce; and (v) Exploration of potential collaboration in other shipbuilding-related projects. KSOE is a global leader in shipbuilding and marine engineering, with proven expertise in designing and constructing commercial vessels, naval platforms, and offshore infrastructure. KSOE oversees the operations of some of the world's largest shipyards, including Hyundai Heavy Industries, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries. This MoU, under which the two companies will pursue strategic cooperation across a range of areas, aligns with the Government of India's vision to develop the country into a global maritime hub under the 'Maritime India Vision 2030' and the 'Maritime Amrit Kaal Vision 2047'. These strategic frameworks are backed by initiatives such as the recently announced INR 250 billion Maritime Development Fund, aimed at accelerating investment in shipbuilding, port modernization, and infrastructure upgrades.
