India Proposes Rs 25,000 Crore Fund to Attract Shipbuilding Investments from Korea and Japan

ENA Global 2024-09-16 16:12:32 New Delhi, Sep 16 (KNN) India is setting its sights on South Korea and Japan for crucial investments and technology transfers to elevate its shipbuilding and ship repair capabilities, according to TK Ramachandran, Secretary in the Ministry of Ports, Shipping and Waterways (MoPSW). The initiative aims to revitalise India's domestic shipping supply chain and establish a robust maritime infrastructure. The ambitious Rs 25,000 crore Maritime Development Fund (MDF) will provide long-term, low-cost financial support for indigenous shipbuilding, with equity funding sourced from the Centre, public sector units (PSUs), pension funds, and private investors. Currently, India's share in the global shipbuilding market stands at a meager 1 percent, with the industry being predominantly dominated by China, South Korea, and Japan. In a bid to change this scenario, Ramachandran announced that India is actively engaging with South Korean and Japanese entities to develop shipbuilding and repair clusters within the country. The proposal involves setting up these clusters on land provided by Indian states, as part of a broader strategy to attract foreign investments. We have communicated to South Korea and Japan that if they bring their technology and investments, we will provide them with land for establishing shipbuilding and repair clusters, Ramachandran stated. The Indian delegation has already met with South Korean authorities and is planning a similar engagement with Japanese stakeholders to explore their interest in the proposed projects. Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, has reportedly reached out to chief ministers across the country, urging them to facilitate land allocation for these ventures. Three states have already shown a willingness to provide land, though their identities remain undisclosed. Possible candidates for setting up shipbuilding and repair facilities include South Koreas Hanwha Ocean Co. Ltd and Samsung Heavy Industries, as well as Japans Mitsubishi Shipbuilding Co. Ltd and Mitsui Engineering. This initiative seeks to consolidate shipbuilding capabilities and spur greater efficiency and innovation within the sector. Ramachandran made these remarks during the 20th Maritime State Development Council (MSDC) held in Goa, where discussions centered on the creation of a mega shipbuilding park that will span multiple states. Indias fleet comprises 1,526 vessels with a gross tonnage of 14 million as of December 2023, with 44 percent being over 20 years old. The Maritime India Vision 2030 and Amrit Kaal Vision 2047 aim to address these challenges and unlock a potential market opportunity exceeding USD 237 billion by 2047. (KNN Bureau) 39293 https://knnindia.co.in/news/newsdetails/global/india-proposes-rs-25000-crore-fund-to-attract-shipbuilding-investments-from-korea-and-japan 2024-09-16 16:12:32 knnindia.co.in India Proposes Rs 25,000 Crore Fund to Attract Shipbuilding Investments from Korea and Japan