Boosting Indigenous Shipbuilding in India through Government Initiatives
Key Ideas
  • Government provides financial incentives for indigenous shipbuilding, including higher assistance for vessels using green fuels like Methanol, Ammonia, and Hydrogen fuel cells.
  • Infrastructure status granted to shipyards to facilitate cheaper capital and capacity expansion, boosting Indian shipbuilding industry.
  • Promotion of indigenous shipbuilding through increased local content requirements and Right of First Refusal policies.
  • Introduction of schemes like Green Tug Transition Programme and Harit Nauka guidelines to promote environmentally sustainable ship operations.
The Ministry of Ports, Shipping and Waterways in India has taken significant steps to boost indigenous shipbuilding in the country. These initiatives aim to increase the use of modern technologies and machinery in shipbuilding. Financial assistance is provided for vessels using green fuels like Methanol, Ammonia, and Hydrogen fuel cells, as well as for vessels with electric or hybrid propulsion systems. The government has also amended the Shipbuilding Financial Assistance Policy guidelines to include wind farm installation vessels and sophisticated dredgers for higher financial assistance. The government has advised entities dealing with shipbuilding to prioritize local content based on the Make in India order. Infrastructure status has been granted to shipyards, enabling them to access cheaper capital and invest in capacity expansion. Various policies like the Right of First Refusal aim to promote indigenous shipbuilding by giving preference to Indian shipyards in government tenders. Additionally, schemes like the Green Tug Transition Programme and Harit Nauka guidelines have been introduced to promote environmentally sustainable practices in ship operations. The government has also approved subsidies for Indian shipping companies in global tenders and continues to implement policies to create demand for indigenous shipbuilding. These efforts are aligned with the vision of Atmanirbhar Bharat, focusing on self-reliance and boosting the Indian economy through the shipping sector.
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