India Strengthens Shipbuilding Capacity with Financial Assistance Plan

As stated by the Ministry of Ports, Shipping and Waterways (MoPSW), the main objective of the initiative is to enhance the country's capability to construct a greater number of ships each year. In this regard, India is said to intend to utilize the financial resources to support in the development of four million gross registered tonnage (GRT) in its shipbuilding capacity. 

As revealed, the government has further evaluated its Shipbuilding Financial Assistance Policy (SBFAP) to aid local shipyards. In the background, India's Right of First Refusal (RoFR) system designated a 'top priority' status for government contracts related to vessels constructed domestically, flying under India’s flag, and owned by Indian companies.

To be exact, in the past, RoFR mainly favored Indian-flagged ships, meaning that if a foreign-built ship was the best bidder, it could be given precedence. Currently, a ship that is constructed, flagged, and owned in India will be deemed the most qualified for a government-related project, while those that are Indian-built but flagged and owned by foreign entities will be regarded last, as stated by India’s Ministry of Ports, Shipping and Waterways.  

The primary goal of GTTP is focused on reducing carbon emissions and lessening environmental influence by shifting to 50% zero-emission tug activities by 2030 and entirely green operations by 2047. 

Pushing forward with sustainability-focused initiatives, the ministry emphasized that a Coastal Green Shipping Corridor, starting with the Kandla-Tuticorin route, will be established to encourage low-emission maritime transport along national trade routes. It will be set up in collaboration with SCI, Deendayal Port Authority (DPA), and Chidambaranar Port Authority (VoCPA).