Government to soon unveil new shipbuilding, breaking and repair policy
The government will soon come out with a new shipbuilding, breaking and repair policy with an aim to double the size of the industry to INR 20,000 crore by 2022.
A top government official said the new policy will have a special focus on building a niche capacity and positioning India as a manufacturing hub of LPG, LNG, cruise and chemical tanker ships, besides inland vessels.
“As the inland waterways grow, we would require almost 200 inland vessels every year,” the official said requesting anonymity.
“Instead of going for imports, we want it to be manufactured locally. The building facility could be provided at Cochin Shipyard or near any other government-owned port where we already have land near the coast.”
The proposed policy will also include setting up a maritime development fund to financially assist the domestic shipbuilding industry.
Indian shipyards have less than 1% share in global shipbuilding and repair market, which is dominated by Singapore, China and some Middle Eastern countries that have almost 45% share.
The new policy proposes a ship breaking cluster at Alang in Gujarat and also lower tax burden to make the industry globally competitive.
The industry has already been awarded the infrastructure status, which is expected to make loans cheaper.
The official said that “We will also be relaxing the Indian ship breaking code and bring it in line with the international code, so that we can pluck the low hanging fruits.”
The Indian ship breaking industry is worth INR 5,500 crore and can grow to INR 11,000 crore by 2022 and INR 18,000 crore by 2026, according to a shipping ministry-commissioned report prepared by management consultancy AT Kearney.
Tag Keyword: Shipbuilding Policy , Vessels , Government , Cochin Shipyard