Govt is set to announce Rs 70,000 cr package to boost domestic shipbuilding, port-linked infra

NEW DELHI: The government is set to announce a Rs 70,000 crore package to provide incentive, interest subsidy and long-term finance to boost domestic shipbuilding, ship breaking and port-linked infrastructure, in a bid to propel India into the top 10 countries globally for both shipbuilding and ship ownership in the next five years. At present, India ranks 14th in both shipbuilding and ship ownership.The umbrella programme is targeted to generate two crore direct and indirect jobs in the next five years. Sources said the objective of the programme is to reduce India’s dependence on foreign ships and to be future ready to face any supply chain disruptions.The package will have four components, including the Shipbuilding Financial Assistance Scheme to provide financial aid to shipbuilders; setting up a Maritime Development Fund; and capacity creation for developing greenfield clusters and expansion of existing hubs.Sources said the programme has been finalised learning from other major maritime nations, such as China and South Korea, where govt-led financial support and cluster-based development have made them top players in shipbuilding. “Since this requires long-term financing, the Maritime Development Fund will enable players to have access to such long-term and low-cost financing,” said an official.TOI on May 14 had reported that the govt has identified four land parcels of 2,000-3,000 acres each in Odisha, Andhra Pradesh, Gujarat and Tamil Nadu for developing greenfield shipbuilding and repair hubs. Early this month, an MoU was signed for development of mega shipbuilding clusters in Cuddalore and Thoothukudi in Tamil Nadu. Another MoU is likely to be signed in Gujarat for a mega cluster at Kandla when PM Narendra Modi visits Gujarat today.During his visit, Modi will participate in ‘Samudra se Samriddhi’ event and inaugurate and lay the foundation stone of multiple development projects worth over Rs 34,200 crore at Bhavnagar. In an official statement, PMO said, Modi will inaugurate and lay the foundation stone for multiple development projects related to the maritime sector worth over Rs 7,870 crore.