India Aims for Top 5 in Global Shipbuilding
India is setting ambitious goals for its shipbuilding industry, aiming to break into the top 10 globally by 2030 and the top 5 by 2047. The Ministry of Ports, Shipping and Waterways is implementing several strategic initiatives to enhance shipbuilding infrastructure and promote indigenous production. These measures include revised policies, new guidelines, and sustainability programs aimed at boosting local shipyard capabilities and reducing environmental impact.
Revised Policies to Boost Participation
In a bid to stimulate participation in shipbuilding activities, the Ministry has amended the Shipbuilding Financial Assistance Policy (SBFAP) as of January 29, 2025. This amendment is designed to encourage more stakeholders to engage in shipbuilding projects across the country. Additionally, in November 2021, the government released standard tug designs in five variants, specifically for major ports to facilitate the procurement of tugs built in Indian shipyards. This move is expected to enhance the operational capabilities of Indian ports while supporting local shipbuilders.
Promoting Indigenous Shipbuilding
On September 20, 2023, the Ministry revised the hierarchy of the Right of First Refusal (RoFR) for vessel charters through a tender process. The new hierarchy prioritizes vessels that are Indian-built, flagged, and owned, followed by those that are Indian-built and flagged but owned by the International Financial Services Centres Authority (IFSCA). This structured approach aims to ensure that Indian shipyards receive preferential treatment in government contracts, thereby fostering a more robust domestic shipbuilding industry.
Environmental Initiatives and Guidelines
The government is also focusing on sustainability through the launch of the Green Tug Transition Programme (GTTP), which aims to reduce carbon emissions from tugboat operations. This initiative encourages the adoption of environmentally friendly technologies in the maritime sector. Furthermore, the Harit Nauka guidelines have been introduced to promote greener technologies in inland vessels, aligning with global efforts to minimize environmental impacts. These initiatives reflect India’s commitment to balancing industrial growth with ecological responsibility.
Support for Local Content and Shipyard Development
In a significant move to bolster local shipbuilding, the government has included shipyards in the updated Harmonized Master List of Infrastructure Sub-sectors. This inclusion is part of a broader strategy to ensure that government departments and public sector undertakings prioritize Indian shipyards for vessel procurement. According to the Public Procurement (Preference to Make in India) Order, 2017, ships valued under ₹200 crores must be sourced from Indian shipyards. This policy aims to enhance local content in shipbuilding and stimulate economic growth within the sector.
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