In a bid to boost domestic shipbuilding and address rising demand, the government is allocating over Rs 20,000 crore for the second phase of the Shipbuilding Financial Assistance Policy. This initiative includes the development of four greenfield shipbuilding and repair hubs over the next six years, located in Odisha (Kendrapara near Paradip Port), Andhra Pradesh (Dugarajapatnam), Gujarat (Kandla), and Tamil Nadu (Tuticorin).
This shipbuilding effort is crucial as India requires approximately 112 new vessels, estimated at Rs 85,700 crore, to transport crude oil, petroleum products, LPG, LNG, and more in the next five years. Currently, domestic shipyards can only produce 28 of these ships.
The Andhra Pradesh government is engaging with Imabari Shipbuilding, Japan’s largest shipbuilder, and South Korean firms HD KSOE and Hanwha Ocean regarding the Dugarajapatnam project. Despite having only eight large, seven medium, and 28 small shipyards, officials emphasize the significant potential to enhance capacity and position India as a global player in the shipbuilding industry.
Additionally, a proposal to establish a Rs 25,000 crore Maritime Development Fund will soon be presented to the Cabinet to support the shipping sector through various financial instruments.
Share it now
