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Time of India
19 hours 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.
Hans India
3 days ago
- Business
- Hans India
Sarbananda Sonowal to visit Norway, Denmark to boost maritime ties
New Delhi: In a bid to strengthen maritime ties, Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, is set to embark on a five-day official visit to Norway and Denmark, beginning June 2. The visit holds strategic importance as the minister will lead the Indian delegation comprising senior officials from the Central and state governments, along with leading players from the private sector. 'The maritime sector is a cornerstone of economic growth and national development. Under the dynamic leadership of Prime Minister Narendra Modi, India has not only become the world's fourth-largest economy but is also working towards securing its place as a major maritime nation,' said Sonowal. 'As we move forward toward realising the vision of Viksit Bharat by 2047, it is vital that we unlock the full potential of our Blue Economy, which offers immense opportunities in trade, connectivity, clean energy, and innovation,' he added. During the visit, Sonowal will address a high-level meeting on oceans at the 60th edition of the Nor-Shipping event in Oslo and inaugurate the first 'India Pavillion' there. He will also chair the India@Nor-Shipping Country Session and hold global outreach for the upcoming 'India Maritime Week 2025' scheduled from October 27-31 in Mumbai. On the sidelines of Nor-Shipping event, the minister is scheduled to hold bilateral meetings with his ministerial peers from Japan and Norway, and meet leading European shipping companies, component manufacturers and technology developers. Sonowal will also visit Oslo Port Authority. The India Pavilion also has a dedicated pavilion of 'National Maritime Heritage Complex' and engage global delegates on India's 5000-year-old civilisational maritime heritage and global linkages, according to the ministry. While in Denmark, among other engagements, he will interact with the students of 'Blue MBA' at the Copenhagen Business School on the economic opportunities that India's high-growth journey presents for future managers and leaders. 'My visit to Norway and Denmark — both recognised as global maritime leaders — is aimed at building strong, future-ready partnerships. These engagements will help us exchange best practices, explore joint ventures, and align efforts for a greener and more resilient maritime ecosystem,' said the minister.
India Gazette
3 days ago
- Business
- India Gazette
Union Minister Sarbananda Sonowal to embark on five-day official visit to Norway & Denmark to strengthen maritime ties
New Delhi [India], May 31 (ANI): Union Ports, Shipping and Waterways Minister Sarbananda Sonowal will embark on a five-day official visit to Norway and Denmark beginning June 2, an official statement said on Saturday. The visit holds strategic importance as the Union Minister will lead the Team India delegation comprising senior officials from the Central and State governments, along with leading players from the private sector. During the visit, the Shipping Minister will address the High-level Meeting on Oceans at the 60th edition of the Nor-Shipping event in Oslo; inaugurate the first 'India Pavillion'; Chair India @ Nor-Shipping Country Session; and hold global outreach for the upcoming 'India Maritime Week 2025' scheduled from 27-31 October in Mumbai. On the sidelines of Nor-Shipping, Union Minister Sonowal is scheduled to hold bilateral meetings with his ministerial peers from Japan and Norway, and meet with leading European Shipping Companies, Component Manufacturers and Technology Developers. Sarbananda Sonowal will also visit the Oslo Port Authority. The India Pavilion also has a dedicated pavilion of the 'National Maritime Heritage Complex' and engages global delegates on India's 5000-year-old civilizational maritime heritage and global linkages. Speaking on the occasion, Union Minister Sarbananda Sonowal said, 'The maritime sector is a cornerstone of economic growth and national development. Under the dynamic leadership of Prime Minister Narendra Modi, India has not only become the world's fourth-largest economy but is also working towards securing its place as a major maritime nation. As we move forward toward realising the vision of Modi Viksit Bharat by 2047, it is vital that we unlock the full potential of our Blue Economy, which offers immense opportunities in trade, connectivity, clean energy, and innovation.' While in Denmark, amongst other engagements, he will interact with the students of 'Blue MBA' at the Copenhagen Business School on the economic opportunities that India's high-growth journey presents for future managers and leaders Sarbananda Sonowal will also visit Minnehallen 'The Hall of Remembrance' to pay homage and obeisance to the fallen Indian sailors who lost their lives during World War-II. Adding further Sonowal said, 'My visit to Norway and Denmark -- both recognised as global maritime leaders -- is aimed at building strong, future-ready partnerships. These engagements will help us exchange best practices, explore joint ventures, and align efforts for a greener and more resilient maritime ecosystem. We believe in a development model that is sustainable, inclusive, and mutually beneficial, and this visit reflects our commitment to that shared vision.' Sarbananda Sonowal, who is leading the delegation from India, is accompanied by senior officials from the Ministry of Ports, Shipping & Waterways (MoPSW), Cochin Shipyard Limited (CSL), Garden Reach Shipbuilders & Engineers (GRSE), Maharashtra Maritime Board (MMB), Karnataka Maritime Board (KMB), Government of Andhra Pradesh, Andhra Pradesh Economic Development Board, Guidance Tamil Nadu, and leading large and MSME Indian Shipyards. (ANI)
Fibre2Fashion
7 days ago
- 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)
Time of India
23-05-2025
- Business
- Time of India
New Bharat dawns with a resurgent Northeast: Union minister Sarbananda Sonowal
Guwahati: In a compelling call to action, Union Minister of Ports , Shipping and Waterways , Sarbananda Sonowal invited global and domestic investors to explore the unprecedented growth potential of Northeast India. Speaking at the Northeast Investor Summit – Bharat Mandapam held in New Delhi, Sonowal emphasised that a 'New Bharat is dawning with a resurgent Northeast at its heart.' Addressing the summit's thematic discussion Topic 'Unlocking Capital for NE Infrastructure ,' Sonowal highlighted the transformation of the Northeast Region (NER) over the last decade, attributing this resurgence to the sustained leadership of Prime Minister Narendra Modi. 'Under the visionary leadership of Prime Minister Narendra Modi ji, the Northeast has undergone an era-defining transformation. What was once perceived as remote and isolated is now rapidly becoming India's gateway to Southeast Asia,' Sonowal said. 'The region is not just a part of India's growth story—it is now a major chapter in it.' Sonowal pointed to a landmark figure—more than 700 visits by Cabinet Ministers to the Northeast in the past decade—as proof of the government's sustained focus on the region's development. Sonowal stressed the government's commitment to inclusive infrastructure, particularly in maritime and inland waterways, which are reshaping the economic landscape of the region. Live Events 'Inland waterways are one of the most promising frontiers of development for the Northeast,' Sonowal said. 'We now have more than 20 notified National Waterways in the region. The scheme is being promoted to catalyse multi-modal connectivity, create logistics hubs, and boost cargo movement. Infra development along these waterways will unlock new corridors of economic activity and generate large-scale employment.' Highlighting India's logistics advantage, Sonowal noted that 90% of the country's trade by volume and 70% by value moves through shipping, With Inland Waterways under the IBPR (Indo-Bangladesh Protocol Route) and Sittwe Port in Myanmar will act as an emerging game changers in unfolding transformative transportation unlocking value. In a nod to the region's rich talent pool, Sonowal detailed new initiatives in maritime skill development targeting youth from the Northeast, preparing them for careers in port operations, vessel management, and logistics. Sonowal also emphasised the immense potential for 'Heal in India' medical tourism in the NER, leveraging the region's natural serenity, wellness traditions, and rising healthcare infrastructure. 'The market potential of the Northeast is not limited to domestic consumption,' Sonowal said. 'It connects directly with ASEAN and BBIN nations, offering investors unparalleled access to over 600 million consumers in neighbouring economies.' The summit witnessed participation from major domestic and international investors, development agencies, and policy leaders. Sonowal's address served as a clarion call to align investments with the government's infrastructure thrust, particularly in sectors such as waterways, logistics, tourism, wellness and healthcare. With its newfound connectivity, abundant natural resources, and youthful demographic, Northeast India is now poised to become a key driver of India's growth story—ushering in a truly inclusive and integrated New Bharat. Bimal Borah Assam Minister for Industries, Commerce and Public Enterprises, Bimal Borah said the State is poised to reach a whopping Rs 11 lakh crore GSDP by 2030, positioning the State among the leading States in the country. Borah said this while addressing the ministerial session on 'Infrastructure and Logistics' at the Rising Northeast Investors' Summit 2025, which was inaugurated by Prime Minister Narendra Modi. "Under the visionary leadership of Prime Minister Narendra Modi and with the unwavering support of the Government of India, Assam has witnessed remarkable economic strides. Our Gross State Domestic Product (GSDP) has more than doubled from ?2.8 lakh crore in 2018 to Rs 5.7 lakh crore in 2024. This growth trajectory is a testament to the resilience and determination of our people," said Borah. In the same breathe, the Minister for Industries and Commerce said that infrastructure investments have surged from Rs 2 lakh crore to Rs 11 lakh crore, underscoring the nation's commitment to regional development. "Today, we stand at the cusp of a transformative journey - one that propels Assam from its rich cultural heritage to a dynamic economic future," he quipped. Projecting Assam as not just a land of natural beauty and diverse cultures but a rapidly emerging as a beacon of economic growth and opportunity, Borah said, "Our strategic location, with Guwahati serving as the gateway to the seven sister states, positions us uniquely to tap into the vast potential of Southeast Asia." Borah pointed out that Assam's export profile has witnessed a significant transformation with exports going up from Rs 2,474 crore in 2017-18 to Rs 3,664 crore in 2023-24, with key contributors being tea (55%), petroleum products (23%), and pharmaceuticals (5%). The Industries and Commerce Minister said the One District One Product (ODOP) initiatives have helped in identifying and promoting unique products from each district such as muga silk, tea, and handloom products thus enhancing local entrepreneurship and export potential. "In Assam, 29 unique ODOP products are identified across 35 districts. Geographical Indications (GIs) play a crucial role in protecting, promoting, and commercialising region-specific products. Assam, with 31 GI products showcase the State's rich cultural and artisanal legacy," he said, adding, "Assam's GI portfolio include remarkable handicrafts such as the iconic Jaapi headwear, skillfully crafted from bamboo and cane, the intricate Bell Metal Craft, producing unique utensils and decorative pieces and the Bihu Dhol, a rhythmic symbol of Assam's vibrant festivals. These GI-certified products serve as vital economic drivers, sustaining the livelihoods of artisans, weavers and farmers across the State." Borah said that Assam with its rich natural resources and strategic location holds significant export potential. "The State is renowned for its Assam tea, which is exported globally. Additionally, Assam's abundant agricultural produce, including spices, fruits, and medicinal plants, offers considerable opportunities for export. Its proximity to ASEAN countries further enhances its potential as a key player in cross-border trade." He said that the State Government, in an ambitious bid to diversify its manufacturing and export portfolio, is aggressively promoting high-potential sectors such as electronics, semiconductors, and renewable energy. "The Tata OSAT semiconductor plant at Jagiroad, a significant milestone in itself, positions Assam as a key player in the global semiconductor industry. This facility not only enhances Assam's manufacturing capabilities but also sets the stage for exponential growth in exports," he said. Borah said that the State Government in order to sustain and accelerate growth is enhancing trade infrastructure at key border points like Sutarkandi, Golokganj, Mankachar (Bangladesh), and Darranga (Bhutan) to facilitate smoother cross-border trade and deeper integration with its neighbours. He said the Jogighopa Multi-Modal Logistics Park, India's first international MMLP, spread over 317 acres along the Brahmaputra, will integrate road, rail, air, and waterway connectivity. "This state-of-the-art facility will handle 13 million metric tons annually, reduce logistics costs by 10%, and generate approximately 20 lakh direct and indirect jobs," he said. While appealing to the industry captains and investors to invest in Assam, Minister Borah said, "The Northeast holds a pivotal role in shaping a developed Bharat. With the collective efforts of the Government of Assam, the Government of India, and our industrious citizens, we are poised to elevate Assam's economic landscape to unprecedented heights."
