Our Bureau
New Delhi
This Wednesday, on September 24th, the Central Government, in an attempt to boost India’s position in the world’s leading shipbuilding nations, has announced an umbrella package involving nearly Rs 70,000 crore in investment in the maritime sector. The maritime sector is currently dominated by other Asian nations like China, Japan and South Korea.
This is being looked at as one of the most significant reforms that the government has taken in this sector since the country’s independence. The Information and Broadcasting Minister of India, Ashwini Vaishnaw announced the decision stating that the shipbuilding sector needs large capitals to thrive and compete with the world.
Vaishnaw said, “Shipbuilding needs deep capital. Only those countries could save the shipbuilding industry historically that gave substantial support to industry.”
It was reported that this 70,000 crore package comes with a four-pillar approach to strengthen India’s domestic capacity, improve the sector’s long-term financing, promote greenfield and brownfield shipyard development, and enhance technical capabilities and skilling.
The three major schemes that have been approved are – Shipbuilding Assistance Scheme that has got Rs 24,736 crore investment, Maritime Development Fund with an investment of Rs 25,000 crore and Shipbuilding Development Scheme with a Rs 20,000 crore investment.
These three schemes are expected to generate Rs 4.5 lakh crore investment and manufacture over 2,500 vessels. This move by the Central Government aims not only to attract global investment but also help India reduce its dependence on foreign ships which is currently around 95%.
Prime Minister Narendra Modi has also lauded the decision and called the package a “transformative push for maritime self-reliance”. He noted that he believed that these schemes will unlock 4.5 million Gross Tonnage capacity, generate jobs, and attract investment.
