Indian Government’s Budget Plan for Maritime Development and Green Ship Scheme

Indian government is reportedly planning to introduce a maritime development fund to support shipbuilding firms, with the announcement expected in the upcoming Budget, as per a report by CNBC Awaaz on July 11. Additionally, the Budget may include a green ship scheme to promote hydrogen-based vessels on domestic waterways, aiming to reduce pollution.

Major shipbuilding companies like Mazagaon Dock Shipbuilders, Cochin Shipyard, and Garden Reach Shipbuilders & Engineers saw their stocks trading higher on the NSE. The proposed maritime development fund, estimated to have a corpus of Rs 15,000-20,000 crore over seven years, aims to enhance self-reliance in the shipping industry by providing affordable loans to shipbuilding firms.

Furthermore, Indian government plans to replace traditional oil-consuming ships with eco-friendly vessels under the green ship scheme. Cochin Shipyard has already built some green ships as part of a pilot project, with plans to expand the initiative in the upcoming Budget. A joint venture between Shipping Corporation of India and Indian Oil Corporation for manufacturing large oil tankers has also been proposed to reduce reliance on foreign firms, as reported by Mint.

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