According to those with knowledge of the development, the government might give the whole shipping industry—including all types of ships and vessels—infrastructure status. According to them, the finance ministry is considering a proposal for a broader coverage, but the shipping ministry had just requested the tag for coastal vessels.
According to the sources, the finance ministry has started talking to banks and other financial organizations, such as the National Bank for Financing Infrastructure and Development. This will make it possible for the shipping sector to get other kinds of financial support and concessions.
Currently, shipbuilding and shipyards have infrastructure status, which enables companies to issue infrastructure bonds to cover operating capital needs and get long-term, low-cost project financing. It is anticipated that extending these advantages to the whole sector will strengthen the domestic shipping sector.
A parliamentary committee had suggested earlier this year that the government take into account granting shipyards infrastructure status for all ships and vessels, not only coastal commerce. It also argued for the establishment of a marine finance program or specialized financing organization that may provide the shipbuilding sector a much-needed boost.
The government’s goal, as part of the Maritime India Vision 2030, is to move India up from its present ranking of 22 in shipbuilding to the top 10. In order to provide financial assistance to domestic shipyards for shipbuilding contracts signed between April 1, 2016, and March 31, 2026, it has introduced the Shipbuilding Financial Assistance Policy scheme. The financial assistance rate will begin at 20% in 2016 and decrease to 11% in 2026.
Additionally, the government wants to establish several shipbuilding hubs in five states, including Maharashtra, Andhra Pradesh, and Gujarat.
