INDIA’S Finance Minister has revealed plans to set up a 250-billion-rupee maritime development fund to support the country’s shipbuilding and repair industry.
The fund, worth approximately AU$4.65 billion, will see the south Asian nation attempt to refurbish its infrastructure in an effort to become a world-class manufacturer.
Announced on Saturday (1 February), the government will reportedly contribute 49% of the fund, with the remainder to come from port authorities and the private sector.
The fund is reportedly also targeted towards financing ship acquisitions, in line with the Indian government’s policy of boosting Indian-flagged ships’ share of the global market by up to 20 percent by 2047.
The Minister of Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal recently announced the development of shipbuilding clusters to be established in five states, with each cluster to have the capacity for 1.2 million gross tonnes per year, in line with the government’s goal to make India a top ten global shipbuilder by 2030.
The billion-dollar spending is part of Prime Minister Narendra Modi’s goal for India to become a developed nation by 2047, which happens to align with the 100th year anniversary of its independence.
India will reportedly also issue credit notes for shipbreaking in Indian yards to incentivise the scrapping of old vessels and promote building of new ones.
Minister Sitharaman announced an extension of import tax exemption of 10 years on inputs needed for shipbuilding and shipbreaking activities.
