India’s Initiative to Modernize Shipbuilding Yards and Attract Investment

The Ministry of Ports, Shipping, and Waterways in India is accelerating a $2-3 billion policy push to modernize and expand shipbuilding yards, with major players like MSC showing interest. Shipbuilding yards are crucial facilities where new ships are constructed, equipped with dry docks, basins, and workshops for assembling hulls and components. The Mediterranean Shipping Company is considering setting up a shipbuilding and repair yard in Gujarat, given China’s current capacity constraints in shipbuilding.

The policy initiative aims to promote capacity expansion, technology upgrades, and workforce training at shipbuilding yards, as well as establish shipping clusters in coastal states like Andhra Pradesh and Odisha. The Centre is expected to cover about 50% of the financial implications, with the remainder coming from financial institutions and multilateral agencies. Additionally, the ministry is exploring partnerships with Asian nations like South Korea and Japan to attract investments in the shipbuilding sector.

In addition to the policy drive, efforts are being made to incentivize investments for infrastructure like breakwaters to protect harbors and coastlines. The Maritime Development Fund and the Shipbuilding Financial Assistance Policy have been introduced to support the growth of the shipbuilding industry. This initiative aims to create a conducive ecosystem for shipbuilding, attract investments, and enhance the country’s shipbuilding capabilities.

Source