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Time of India
4 days ago
- Business
- Time of India
India now ranks third in building general dry cargo vessels for European short sea trade: Sarbananda Sonowal
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India now ranks 3rd in building general dry cargo vessels for the European short sea trade , Union Minister for Ports and Shipping Sarbananda Sonowal announced on Thursday, quoting private minister attributed this feat to Prime Minister Narendra Modi's "bold Maritime Amrit Kaal Vision 2047"."India's shipbuilding ambitions are no longer just on paper, they are taking shape in shipyards and recognised globally," the minister wrote on X, attaching an infographic of strategic reforms to skilling our workforce, every step taken by the Modi Govt is making Make in India, Make for the World a reality. Our rise proves, India means business and the world knows it," the minister supplemented in his X Maritime India Vision (MIV) 2030 provides a comprehensive framework for the holistic development of India's maritime sector, encompassing ports, shipping, and waterways. MIV 2030 outlines 150 initiatives aimed at propelling India to global maritime 10 interconnected themes such as port infrastructure development, enhancing logistics efficiency, improving Indian shipbuilding tonnage, increasing coastal and waterway traffic, fostering technology innovation and policy support, promoting sustainability and global collaboration, address every facet of the maritime ecosystem, ensuring a well-rounded approach to transforming India into a leading maritime status of MIV 2030 gets reflected through the progress made by the Indian Maritime sector over the past 3 years as outlined below:Major Port Capacity increased from 1598 MMTPA in Financial Year 2022 to 1630 MMTPA in Financial Year Vessel Turn Around Time (TAT) reduced from 53 hours in Financial Year 2022 to 48 hours in Financial Year Berth Day Output increased from 16,000 MT in Financial Year 2022 to 18,900 MT in Financial Year the past three years, there has been a 37% increase in the Capital Expenditure to Rs 7,571 crore in Financial Year 2024 (from Rs. 5527 crore in Financial Year 2022) by Ministry of Ports, Shipping and Waterways including a 54 per cent increase in Gross Budget Support (GBS) to Rs 1,687 crore in Financial Year 2024 (from Rs 1,099 crore in Financial Year 2022) which is primarily towards the achievements of goals and targets outlined under MIV the past 3 years, around 75 port development projects have been awarded in Major Ports which includes projects for enhancement of cargo handling capacity and operational efficiency.
Time of India
7 days ago
- Business
- Time of India
Shipyards may lack punch as FinMin pitches for lower quantum in Ship Building Financial Assistance Policy 2.0, ET Infra
Advt Advt By , ETInfra Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. The much-awaited Ship Building Financial Assistance Policy 2.0 will likely see a lower quantum of aid for different categories of ships than the one mooted by the Ministry of Ports , Shipping and Waterways with the Ministry of Finance pitching for a lesser percentage, a move that is expected to hurt local shipbuilders while competing with global yards for to the proposal piloted by the Ministry of Ports, Shipping and Waterways, shipyards would be entitled to get 20 per cent extra as government aid on the cost of constructing a normal ship, 25 per cent as financial assistance for building special category vessels including oil, gas, chemical tankers and container ships and 30 per cent extra for green ships and other vessels with futuristic quantum of financial assistance will be static for the duration of the scheme that will run through March 2035 with possible extension up to 2047 to give 'long term visibility' to the yards while booking the Ministry of Finance is said to have advocated a lower quantum of financial assistance for building ships: 15 per cent for normal ships, 20 per cent for large ships and 25 per cent for specialised vessels including green ships, potentially chopping off 5 per cent from each of the categories suggested by the Ministry of Ports, Shipping and Waterways, sources revamped Ship Building Financial Assistance Policy was appraised in March by the Expenditure Finance Committee (EFC), headed by Secretary (Expenditure) in the Ministry of Finance, basis which the Ministry of Ports, Shipping and Waterways has prepared a note for the consideration of the Union Cabinet Finance Minister Nirmala Sitharaman announced a ₹25,000 crore Maritime Development Fund , a revamped Ship Building Financial Assistance policy, credit note for shipbreaking in Indian yards and infrastructure status to large ships in the February 1 Union Budget.'For long term financing of the maritime industry, a Maritime Development Fund with a corpus of ₹25,000 crore will be set up,' Nirmala Sitharaman said in her Budget speech to Parliament. This will be for distributed support and promoting Ship Building Financial Assistance scheme will be revamped to address cost disadvantages, Sitharaman said. This will also include credit notes for shipbreaking in Indian yards to promote the circular large ships above a specified size will be granted infrastructure status to help access long-term, low-cost funds, Sitharaman pledged while unveiling the the existing Ship Building Financial Assistance scheme that started from April 1, 2016, for a ten-year period, the quantum of aid is reduced by three percentage points every three years, starting with 20 per cent during the first three years, 17 per cent for the subsequent three years, 14 per cent for the next three years and 11 per cent in the tenth the Ministry of Ports, Shipping and Waterways recently amended the norms for implementing the Ship Building Financial Assistance scheme by removing the cap of ₹40 crore for constructing a non-specialised ship within three years from the date of the amendment, the Ministry also retained the quantum of aid at 14 per cent instead of the 11 per cent agreed earlier for the 10th year of the scheme that ends in March 2026 after a ten-year shipbuilders lobbied for removing the ₹40 crore cap on financial assistance per ship, saying that the upper limit was introduced when the shipbuilding prices were low.'However, due to various factors impacting supply chains, raw materials and equipment pricing, the global ship building prices have increased by about 80 percent,' said an executive with a private new regulatory guidelines for lowering carbon emission and emphasis on using green fuels have forced change in technology and the resultant higher capital investment for building a result, ships that were built at, say, ₹100 crore are currently costing more than ₹200 crore. Indian shipyards are now aiming to build ships of higher value.'The financial assistance for such high value vessels will exceed ₹40 crore at 14 per cent itself. If the vessels being built are capable of running on alternate fuels or are hybrid, then the cap of ₹40 crore will be of very low value and will be insufficient for local yards to compete with Chinese and other Southeast Asian shipbuilders who also receive substantial support from their respective governments,' the private shipyard executive were of the view that the removal of ₹40 crore cap will help India secure high value shipbuilding projects, boosting export value and higher shipyards reckon that a lower quantum of financial assistance preferred by the Finance Ministry in the revamped scheme would hinder their ability to compete with Chinese and South Korean yards for holds less than 1 per cent (0.06 per cent) of the global shipbuilding market and is ranked 20th in the industry but aims to break into the top 10 ranking by 2030 and top 5 by has the lowest labour costs - a key factor deciding a nation's competitive position in the labour-intensive shipbuilding this advantage has not translated into cost effectiveness because of factors such as reliance on import of key raw materials used in making ships and higher financing costs. India's dependence on imports for most of the inputs consumed in shipbuilding puts cost pressure on local shipbuilding yards suffer from systematic cost and price disadvantages of around 25-35 per cent compared to South Korea, Japan, Vietnam, Indonesia, Malaysia and Philippines, among other cost differential is sought to be offset through the financial assistance China, being one of the cheapest steel makers in the world, helps its yards to reduce costs and lower shipbuilding prices in the global market.
Fibre2Fashion
28-05-2025
- Business
- Fibre2Fashion
India to operationalise 76 waterways by 2027, targets cargo surge
India's Ministry of Ports, Shipping and Waterways has announced plans to make 76 inland waterways operational by 2027 during a Consultative Committee meeting held in Mumbai. Cargo volumes through these routes are expected to increase by 156 million tonnes per annum (MTPA) by the end of fiscal 2026 (FY26). The Inland Waterways Authority of India (IWAI), the nodal agency under the ministry, presented a comprehensive review of major projects, future projections, and the roadmap ahead. India aims to make 76 inland waterways operational by 2027, with cargo volumes expected to rise by 156 MTPA by FY26. Key initiatives include the Jal Marg Vikas Project, Maritime India Vision 2030, and a ₹5,000 crore (~$586.27 million) Northeast development roadmap. Major terminals and corridors are being developed on NW-1, NW-2, NW-16, and NW-31 to boost economic activity and transport efficiency. 'Inland waterways are emerging as the watershed moment in India ' s logistics and transport ecosystem. We are witnessing a transformational shift with policy interventions like the National Waterways Act, 2016, the Inland Vessels Act, 2021 and supplemented by multiple programmes like Jal Marg Vikas Project, Arth Ganga, Jalvahak scheme, Jal Samriddhi scheme, Jalyan and Navic among others. Through Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047,' Indian Minister of Ports, Shipping and Waterways, Sarbananda Sonowal said in a press release. 'These roadmaps are not just policy documents—they are catalysts driving India toward becoming a global maritime powerhouse. Today ' s meeting with esteemed Members of Parliament reflects a unified commitment to boost infrastructure and unlock the immense economic potential of our rivers and coasts. With enhanced budgetary support and cooperative federalism, we are building a greener, more efficient, and future-ready waterway network across the country,' added Sonowal. The Regional Waterways Grid is designed to enhance economic activity by enabling seamless vessel movement along a 4,067 km corridor connecting Varanasi to Dibrugarh, Karimganj, and Badarpur via the IBP route. A traffic study and detailed project report (DPR) for the renovation of the Jangipur navigation lock are currently underway. The corridor is projected to handle cargo volumes of 32.2 million metric tonnes per annum (MMTPA) by 2033. On National Waterway 1 (Ganga), a 1,390 km dedicated corridor is under development to facilitate smooth vessel movement and improve the efficiency of inland water transport. The capacity enhancement of NW-1 aims to support vessels of 1,500–2,000 DWT, alongside the establishment of key cargo terminals at Varanasi (MMT), Kalughat (IMT), Sahibganj (MMT), and Haldia (MMT). The Inland Waterways sector is also undertaking major infrastructure initiatives in the Northeast. A ₹5,000 crore (~$586.27 million) development roadmap has been laid out for the next five years. On NW-2 (Brahmaputra), four permanent terminals—Dhubri, Jogighopa, Pandu, and Bogibeel—and 13 floating terminals are being supported through fairway and navigation improvements. A ₹208 crore ship repair facility at Pandu and a ₹180 crore alternative road are slated for completion by 2026 and 2025, respectively. On NW-16 (Barak), the terminals at Karimganj and Badarpur are operational, while development of NW-31 (Dhansiri) is underway to support the expansion of Numaligarh Refinery Limited (NRL). Fibre2Fashion News Desk (SG)
Indian Express
21-05-2025
- Business
- Indian Express
Govt to boost production of Made-in-India merchant vessels, cut reliance on foreign ships
The Centre has set the ball rolling to increase the fleet of large 'Made in India' merchant ships with an eye on joining the league of the top maritime countries of the world over the next two decades. The move stems partly from a realisation that a large fleet of merchant ships made in India is required, since foreign ships that transport merchandise to and from India may choose to stay away in case of an emergency. A situation like the recent three-day escalation between India and Pakistan can put ports on high alert, and may dissuade foreign ships from visiting Indian ports, thus harming trade. The government also feels that becoming a maritime power is an essential part of being a 'developed nation' — something that the government hopes to become by 2027. 'We need our own ships to replace foreign ships, as the latter may stay away in an emergency situation, and that will harm our global trade. The policy of the government is to take strides in this direction over the next decade or two,' said a highly placed source in the Ministry of Ports, Shipping and Waterways. 'Initiatives have been launched to boost indigenous shipbuilding and repair capabilities, reducing dependence on foreign vessels. India is advancing towards becoming the top 10 shipbuilding nations by 2030 and to ascend to the top five by 2047,' said an official. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal told The Indian Express: 'India has everything it requires to be a global shipbuilding powerhouse. Our strategic location, technological expertise, demographic and cost advantage, and robust steel industry are there.' 'Further, recent radical policy reforms ushered in by our government by way of Maritime Development Fund, Shipbuilding Financial Assistance Policy, Shipbuilding and Ship Repair Clusters, infrastructure status to large vessels, customs duty exemption to components used in ship building and ship repair, comprise a comprehensive package to kickstart a revolution to repost India's shipbuilding industry on the pinnacle of global shipbuilding arena,' the Union minister said. A ministry note explains the major policies that have been set in motion to achieve this ambitious target. In the Union Budget 2025, a Rs 25,000-crore fund has been set up under Maritime Development Fund to provide long-term, low-cost financing for shipbuilding, repair, and maritime infrastructure projects. The government will contribute 49 per cent of the fund, with the remainder to be mobilised from ports and the private sector. This initiative is expected to generate investments of up to Rs 1.5 lakh crore by 2030. With an outlay of Rs 18,090 crore, Shipbuilding Financial Assistance Policy (SBFAP) 2.0 offers direct financial subsidies to Indian shipyards to enhance their competitiveness in the global market. 'To promote sustainable practices, a 40 per cent credit note on the scrap value of old ships is to be provided under the Shipbreaking Credit Note Scheme for shipbreaking in Indian yards. This credit can be used towards the purchase of new 'Made in India' vessels. The customs duty exemption on inputs used for shipbuilding and ship-breaking has been extended for another 10 years, reducing production costs and encouraging domestic manufacturing,' according to the note. 'Global centre for maritime finance' SCI Bharat IFSC Ltd was incorporated on August 12, 2024, as a shipping company, with its registered office at GIFT House, GIFT City, Gandhinagar, Gujarat, to undertake chartering, owning of vessels and other permitted shipping activities as per the ship leasing framework of the GIFT IFSC. 'The establishment of a new shipping company, in collaboration with state-run oil, gas, and fertiliser companies, aims to expand India's fleet by at least 1,000 ships over the next decade. This initiative will reduce reliance on foreign shipping services and cut freight costs by at least 33 per cent by 2047,' says the ministry note. 'As of now, most of the big ships are foreign, and we may be having just 50-60 large ships, in a total fleet of about 1,500 merchant vessels. We need to take a quantum jump in building 'Made in India' ships, and the present policy is designed for that,' said an official. India is already a leading global player in ship recycling. In 2024, India was the second-largest global ship recycling nation by tonnage. India's share in the global ship recycling industry was around 33 per cent in 2023, accounting for one third of the total global tonnage dismantled. The Alang Ship Breaking Yard in Gujarat is a major hub for ship recycling in India, responsible for dismantling a significant portion of retired ships. The next aim, thus, is to make India a leader in shipbuilding too – the idea being to strengthen the maritime triad of shipbuilding, repairing and recycling. Vikas Pathak is deputy associate editor with The Indian Express and writes on national politics. He has over 17 years of experience, and has worked earlier with The Hindustan Times and The Hindu, among other publications. He has covered the national BJP, some key central ministries and Parliament for years, and has covered the 2009 and 2019 Lok Sabha polls and many state assembly polls. He has interviewed many Union ministers and Chief Ministers. Vikas has taught as a full-time faculty member at Asian College of Journalism, Chennai; Symbiosis International University, Pune; Jio Institute, Navi Mumbai; and as a guest professor at Indian Institute of Mass Communication, New Delhi. Vikas has authored a book, Contesting Nationalisms: Hinduism, Secularism and Untouchability in Colonial Punjab (Primus, 2018), which has been widely reviewed by top academic journals and leading newspapers. He did his PhD, M Phil and MA from JNU, New Delhi, was Student of the Year (2005-06) at ACJ and gold medalist from University Rajasthan College in Jaipur in graduation. He has been invited to top academic institutions like JNU, St Stephen's College, Delhi, and IIT Delhi as a guest speaker/panellist. ... Read More
India Gazette
19-05-2025
- Business
- India Gazette
'Projects worth Rs. 1,000 targeted for completion by 2026 in Assam,' says Union Minister Sarbananda Sonowal
New Delhi [India], May 19 (ANI): Union Minister Sarbananda Sonowal, on Monday, reviewed the ongoing projects in Assam and the Northeast with senior officials from the Ministry of Ports, Shipping and Waterways (MoPSW), the Inland Waterways Authority of India (IWAI), Public Works Department (PWD), Indian Port Rail and Ropeway Corporation Limited (IPRCL) and Cochin Shipyard Limited (CSL). The minister underscored the need to complete the projects on time in line with the broader vision of Prime Minister Narendra Modi's Viksit Bharat. 'Northeast is the topmost priority for PM Narendra Modi, our work in the region must sync with the vision of Viksit Bharat,' Sarbananda Sonowal asserted at the meeting. Speaking after the meeting, the Union Minister said, 'As per the vision of PM Modi, we are developing robust waterway infrastructure in Assam and the Northeast with projects worth Rs. 1,000 crores on the anvil, targeted for completion by 2026. In last two years, more than Rs. 1,000 crores have been invested, with Rs. 300 crore worth of projects already completed.' 'Following my review of ongoing works in the region, we are on track to complete the remaining Rs. 700 crore projects by the end of 2025. These efforts aim to boost cargo and passenger movement, improve last-mile connectivity, promote economic growth in the Northeast, and align with the broader vision of Atmanirbhar Bharat through sustainable and inclusive transport solutions.' he added The Union Government is actively developing key infrastructure projects along NW2 (Brahmaputra) and NW16 (Barak), including the construction of passenger vessels of various capacities, terminal facilities, and capacity-building initiatives. Union Minister Sarbananda Sonowal also reviewed progress on the proposed Inland Water Transport (IWT) project at Doyang Lake, and assessed the potential of Noune and Shilloi Lakes in Nagaland for water sports and tourism. Feasibility studies for IWT development on the Tlawng and Chhimtuipui rivers in Mizoram, as well as on Umiam Lake and the Umngot River (NW106) in Meghalaya, were also reviewed. Speaking at the event, Union Minister Sonowal said, 'Under Prime Minister Narendra Modi's visionary leadership, India is steadily moving towards the goal of Viksit Bharat. Assam and the Northeast are central to this progress, with inland waterways playing a vital role. Since 2014, the Modi government has revived this once-neglected mode of transport, especially through the Brahmaputra (NW2) and Barak (NW16) rivers. Schemes like Jalvahak are encouraging businesses to adopt this economical, efficient, and eco-friendly mode, reducing pressure on road and rail, and positioning Assam as a key driver in India's journey towards a self-reliant economy by 2047.' Reviewing multiple projects ranging from new infrastructure development for capacity enhancement on national waterways to scaling up with skill development initiatives for youth of Assam and the Northeast in the maritime sector, Sonowal emphasised the urgency and the need for optimum utilisation of funds. Adding further, the minister said, 'Under the visionary leadership of Prime Minister Narendra Modi, the government is building new avenues for the youth of Assam and the Northeast to participate in India's maritime growth. Through institutions like the Maritime Skill Development Centre in Guwahati and the Centre of Excellence for Inland Water Transport in Dibrugarh, we are training a future-ready workforce equipped for inland and global maritime opportunities. These efforts are part of a larger push to skill, empower and employ our youth in logistics, cargo handling, vessel operations and more--especially as we expand infrastructure on NW2 and NW16. The Northeast is not just a gateway to Southeast Asia, but a key contributor to India's journey towards becoming a global maritime leader and achieving Viksit Bharat by 2047,' he added To further enhance cruise tourism and cargo handling capacity across National Waterways 2 (Brahmaputra) and 16 (Barak), over Rs. 1,500 crores have been earmarked for key projects scheduled to be completed by 2027-28. These include construction of modern jetties equipped with onshore facilities at Silghat, Biswanath Ghat, Neamati Ghat, and Guijan. Additionally, a new building for the Regional Office of the Mercantile Marine Department (MSDC), along with a guest house and office space for ITAT, will be constructed at Fancy Bazar in Guwahati. Sonowal also noted progress on the proposed Water Metro services in Guwahati and Dhubri, with a Rs. 315 crore investment and two electric catamarans being built by Cochin Shipyard Ltd. A Rs. 100 crore cruise terminal in Guwahati and a Regional Centre of Excellence (RCoE) in Dibrugarh worth Rs. 120 crores are also in the pipeline. Infrastructure along Brahmaputra (NW2) includes five riverine lighthouses at key locations, fairway development between Pandu and Bogibeel with Rs. 150 crores, and procurement of two cutter suction dredgers. The IWAI is implementing Rs. 1,010 crore worth of projects across NW2 and NW16, including terminals at Bogibeel and Jogighopa, and a Rs. 208 crore ship repair facility at Pandu. On Barak River (NW16), Sonowal reaffirmed that survey and dredging equipment, and floating terminals at Karimganj and Badarpur projects reflect the Modi Government's commitment to making the Northeast a hub of India's maritime future. To ensure consistent navigability along the Brahmaputra, the Dredging Corporation of India (DCI) has been entrusted with maintaining a minimum assured draft of 2.5 meter from the Bangladesh border to Pandu under NW-2 until 2026-27. For this effort, an additional Rs. 191 crores have been sanctioned. These measures are a part of the Union Government's broader initiative to integrate Northeast India into the country's maritime growth trajectory, aligning with the vision of a Viksit Bharat by 2047. The review meeting was attended by senior officials from the MoPSW, the IWAI, the CSL and IPRCL among others. (ANI)
