India’s finance minister Nirmala Sitharaman announced on Saturday the creation of a $2.9bn maritime development fund for the long-term financing of the country’s shipbuilding and repair industry, the latest in a series of measures the Narendra Modi administration is taking to make the world’s most populous nation a top 10 shipyard country by the end of the decade.
The government will contribute 49% of the fund and seek the remainder from ports and the private sector, with plenty of overtures made to Korean and Japanese shipyards to come and invest in recent months.
“By leveraging the PPP model, the scheme is designed to attract private investment, promote modernisation, and advance green technologies. These efforts will enhance India’s global competitiveness, drive sustainable growth, and solidify its position as a leading global maritime hub,” said minister of shipping, ports and waterways Sarbananda Sonowal.
On top of this the existing Shipbuilding Financial Assistance (SBF) policy will be revamped with Indian owners given financial perks to scrap ageing vessels and rejuvenate their fleets.
