Latest news with #ShipbuildingFinancialAssistancePolicy
Time of India
13 hours ago
- Business
- Time of India
Tamil Nadu sees Blue Economy as a powerful tool to bring sustainable prosperity to coastal districts
Of late, there has been a growing buzz around the blue economy in Tamil Nadu power corridors. The phrase implies economic activities associated with the ocean, seas and coastal regions, which includes shipbuilding, processing and exporting of seafood, and coastal tourism. Tamil Nadu boasts of having the second longest coastline in India (after Gujarat). But the resource hasn't been tapped to a satisfactory extent. And that is something the TN govt is out to fix. "As TN charts its course towards our CM's (M K Stalin) ambition of a $1 trillion economy, the Blue Economy presents some of the most exciting opportunities. Despite having the second longest coastline in India, we believe our coast is still underutilized from an economic standpoint. This is something we are now addressing with urgency through a vision laid out by our CM," said T R B Rajaa, TN Minister for Industries. "We see the Blue Economy as a powerful tool to bring sustainable prosperity to our coastal districts, through investments that create large job opportunities for both skilled and semi-skilled talents," he added. The state's approach is strategic and focused on three key areas – shipbuilding, seafood processing and coastal tourism. Each of these has the potential to dramatically transform livelihoods and local economies. "The key strategy is maximizing the potential of TN's long coastline. Besides the focus areas, we could tap the state's port facilities spread across its coast. Shipbuilding is an area that has drawn the attention of the Centre as well. The Centre has ambitious plans to be part of the top five shipbuilding nations by 2047. In February, during the Union Budget 2025, a key maritime sector announcement was regarding the establishment of the ₹25,000 crore Maritime Development Fund (MDF) to support long-term investments in the sector. The other big ticket takeaway was the introduction of the revamped Shipbuilding Financial Assistance Policy (SBFAP 2.0) to encourage more participation in shipbuilding activities. With an improved outlay of ₹18,090 crore, this policy is aimed at strengthening domestic shipyards and enhancing their global competitiveness. Tamil Nadu is also working on a Marine Transport policy which could be out in a month, and this could generate a lot of economic opportunities," said Darez Ahamed, MD & CEO, Guidance Tamil Nadu. To understand the potential offered by shipbuilding - consider that just one anchor investor can unlock an entire value chain of MSMEs in welding, precision engineering, logistics and marine services. The state has already initiated talks with global players to set up shipbuilding facilities in TN. As per sources, the order books of these international operators are packed till 2032. On its part, the state must provide the infrastructure needed to help them to establish their units here. For every job created inside the shopfloor of a shipbuilding company, seven jobs will be created outside. That's the potential it offers, say stakeholders. In the seafood sector, TN is no longer content with being just a supplier of raw catch. The game plan now is to build end-to-end infrastructure for seafood processing, cold chains and export-quality packaging, ensuring that value addition happens right here in the state's fishing hamlets, creating better incomes and sustainable livelihoods for the coastal communities. Infrastructure, especially roads connecting the coastal belt, cold chains along the TN coast, availability of power for these cold chains, mapping the wasteland on the coast, utilizing it adequately for growth of marine food and processing industries, are some of the key areas TN should focus on, said a leading consultant for the marine food industry, on condition of anonymity. "We will be addressing all the issues that have been holding back the growth of the seafood industry in Tamil Nadu, vis-a-vis neighbouring states including Andhra Pradesh, which accounts for Rs 26,000 crore worth seafood exports as against TN's Rs 8,000 crore. We would soon match the best performing states in this sector," a TN govt official said. Coastal tourism is a major plus point. Tamil Nadu's coast is beautiful, diverse and rich in culture, but it remains largely unexplored. The state is developing a blueprint to unlock this through sustainable, community-led tourism, which will entail eco-friendly resorts, avenues for water-based recreational activities and support for local entrepreneurship. The aim is to make the coast a world-class destination; while keeping it rooted in tradition. "To ensure this transformation is inclusive, we plan to skill the youth in coastal regions through initiatives under the Naan Mudhalvan programme. We want our coastal communities to be more than beneficiaries. They must be the driving force behind this change. Tamil Nadu's Blue Economy strategy is also about building a just, green and resilient future for our coastal communities, and we are committed to making it a reality," Rajaa said. So, of the three segments that have got the special focus under the Blue Economy strategy, which one might get a head start? "We would like all three to take off big-time, since the opportunities are significant. But realistically, the first shipbuilding could take off in just about a year from now," says Guidance Tamil Nadu's Ahamed. That's just on the horizon.
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
Time of India
14-05-2025
- Business
- Time of India
Government set to float 20,000 crore scheme to boost shipbuilding
Representative image NEW DELHI: In a push to promote domestic shipbuilding and meet the growing demand, government is set to provide support of over Rs 20,000 crore for rollout of the second phase of Shipbuilding Financial Assistance Policy and developing four greenfield shipbuilding and repair hubs in the next six years. For shipbuilding and repair hubs, four land parcels of 2,000-3,000 acres each, have been identified in Odisha (Kendrapara near Paradip Port), AP (Dugarajapatnam), Gujarat (Kandla) and TN (Tuticorin) for developing the greenfield shipbuilding and repair hubs, TOI has learnt. The thrust on shipbuilding comes amid a requirement of around 112 ships (estimated cost Rs 85,700 crore) for carrying crude, petroleum products, LPG, LNG, black oil, bitumen and other products in the next five years. Domestic shipyards are capable of producing only 28 such ships. "So, considering the domestic demand, it's the right time to roll out the scheme for developing new shipbuilding hubs. There is also a direction to the petroleum and natural gas ministry to put out tender for 10 medium range tankers in May itself," said a source. Andhra Pradesh govt has held discussions with Imabari Shipbuilding Co, Japan's largest shipbuilder, and two South Korean majors - HD KSOE and Hanwha Ocean - for the project proposed at Durgarajapatnam. At present, India has only eight large, seven medium and 28 small shipyards. "There is a huge potential to create capacity to meet domestic demand and also to become a major global player in the next few years," an official said. Officials said a proposal of creating a Rs 25,000 crore Maritime Development Fund would be placed before the Cabinet for approval. The fund will provide financial assistance to the shipping sector through equity and debt securities. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
