The second edition of the flagship Sagarmala scheme of the Union Ministry of Ports, Shipping and Waterways will offer support for shipbuilding, repair, and recycling in addition to port infrastructure development. It will also include a start-up mentoring and incentivising program.
The scheme has a Rs 40,000 crore budgetary support, with investment potential of Rs 12 trillion over a 10-year-period, Sarbananda Sonowal, Shipping Minister, said. According to him, plans are on to collaborate with leading shipyards – in South Korea and Japan – that include Samsung Heavy Industries, HD Hyundai Heavy Industries, and Hanwha Ocean (formerly Daewoo), etc. “Ship-building reforms have been proposed in the Budget and there is policy push that include Rs 25000 crore Maritime Development Fund (MDF), a revamped shipbuilding subsidy policy, shipbreaking credit note scheme, and tax breaks for components,” the Minister said. Sagarmala 2.0 will address “critical infrastructure gaps”.
At least five ship-building clusters have been planned, including in Odisha, Andhra, Kerala, Maharashtra and Gujarat. Andhra Pradesh has already announced a ship-building policy, while Tamil Nadu is said to be working on one.
So far under Sagarmala, more than 100 port modernisation projects, valued at approximately Rs 32,600 crore, have added 230 million tonnes of capacity. Additionally, over 80 port connectivity projects worth around Rs 52,000 crore have enhanced 1,500 km of connectivity to ports.
