95% of India’s trade is handled through maritime But we have <1% share only in global ship prod

Shipbuilding includes - Ship Building, but also Repair and Recycling (Ship Breaking)

• Ships have a lifespan of 20-30 yrs
• Process
  • Design: Drawings get approved, first piece of steel is cut.
  • Block fabrication: massive sections of ship body are built separately. Pre-fitted with pipes, wires - more you prefit, faster and cheaper is the build. In Japan, Korea, 80% of outfitting is completed before the final assembly. In India, this share is much lower.
  • Final Assembly: Blocks are welded together
  • Launch/Float-out: Hull touches water for the first time, first test of the ship. Then at the berth of port, Workers install engines, electronics, cabins and safety gear.
  • Trials: Performance and safety tests done. Then delivered.

Rs. 69,700 Crore - Shipbuilding Dev Package

• Vision: Become top 10 globally in shipbuilding by 2030, top 5 globally by 2047
• Shipbuilding Financial Assistance Scheme
  • Financial Assistance - 20,600 Crore support to shipyards - 15% to 25% per vessel depending on vessel size
  • Ship breaking Contract Note - 4,000 Cr - Credit note of 40% of vessel’s scrap value
  • National Shipbuilding Mission - drive shipbuilding initiatives and invite foreign collaborators
• Maritime Development Fund
  • Maritime Investment Fund - 20,000 Cr - to take minority stakes in sector alongside private funding
  • Interest Incentivization Fund - 5,000 Cr - interest incentive of 3% offered to banks
• Shipbuilding Development Scheme
  • Greenfield Cluster - 9,900 Cr - 100% capital support for common maritime infra through 50:50 Centre–State SPV
  • Brownfield capex - 8,300 Cr - 25% capital assistance for critical infra such as dry docks, shiplifts, fabrication facilities and automation systems
  • Shipbuilding risk coverage - 1,400 Cr
  • Capability dev - 300 Cr
• Legal, Policy and Process reforms
  • Infra status to ships - will allow low cost, long-term financing
  • Demand aggregation - Aim to build 110+ vessels in next 10 yrs
  • Legal reforms like Bill of Landing act, Carriage of Goods by Sea act, Coastal Shipping act, Merchant Shipping act, Indian Ports act
• By 2030 - build capacity:
  • 10 world class shipyards, 4 integrated shipbuilding & repair clusters
• By 2047 - tech advancement and global leadership
  • sustainability through green corridors, hydrogen bunkering, methanol-fuelled vessels