India Plans To Reduce Reliance On Foreign Ships With New Shipbuilding Policy

India is taking huge steps to boost its local shipbuilding industry. The Union Ministry of Shipping is working on a new policy to reduce reliance on foreign vessels while improving the country’s share of global trade.

The policy will give financial support, known as viability gap funding (VGF), to make domestic shipbuilding projects more feasible.

The National Shipbuilding Mission will manage a ₹18,000 crore financial support initiative, SBFAP 2.0, during the next 10 years. This program will help India develop more vessels for coastal, inland, and global trade.

The government is also introducing a system under which vessels for coastal cargo transport must be manufactured in India and registered starting in FY31.

The government is considering to establish a ₹25,000 crore Maritime Development Fund (MDF) to provide low-cost loans for shipbuilding and infrastructure development.

India’s share in global shipbuilding is now less than 1%, but the government plans to increase it to 7% by 2030 and 69% by 2047.

Experts agree that establishing a dedicated maritime fund will help India compete on a global scale while also strengthening and self-sufficiently developing its maritime sector.

Reference: Live Mint

India Plans To Reduce Reliance On Foreign Ships With New Shipbuilding Policy appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News