Eight mega clusters set to propel local shipbuilding
new delhi, July 7 -- India is working to dramatically expand its domestic shipbuilding capabilities, with plans to establish eight such clusters along its expansive coastline. While five of these facilities will be built from the ground up, the rest three will involve expansion of existing facilities.
The government has finalised the locations with pre-secured land parcels and necessary clearances, Union shipping secretary T.K. Ramachandran said. The mega-initiative, a cornerstone of the nation's Atmanirbhar Bharat drive, aims to transform India into a global shipbuilding powerhouse.
States have made rapid progress in developing maritime clusters, Ramachandran said in an interview. "All state governments have formed special purpose vehicles to implement the project with approved and identified land parcels and access network connecting the clusters with roads and railway infrastructure. Seaside infrastructure is being developed along with breakwater facilities," he said.
Nations are increasingly looking at shipping as a strategic sector, given Chinese dominance of the sector. US president Donald Trump has called for revitalizing shipbuilding, viewing it as crucial for both national security and economic prosperity. He has signed an executive order to create a Maritime Action Plan, established a new Office of Maritime and Industrial Capacity within the National Security Council, and proposed measures like imposing fees on Chinese-built vessels entering US.
The five greenfield clusters that will come up in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra will host the entire spectrum of ship manufacturing to equipment production, vendors, bunkering stations, insurance and ship leasing, said Ramachandran. These sites will house everything from ship manufacturing and equipment production to vendors, bunkering stations, insurance, and ship leasing entities.
India's push is driven by a desire to significantly increase India's miniscule share of global shipbuilding, currently below 1%. The Maritime India Vision 2030 and Vision 2047 plans aim to elevate India into the top 10 and then top five shipbuilding and ship-owning countries worldwide, respectively.
The target is to raise the share of Indian-built ships in India's fleet from the current 5% to 7% by 2030 and a substantial 69% by 2047.
Odisha, Andhra Pradesh and Tamil Nadu have commissioned techno economic feasibility reports, and the government is exploring tie-ups with global shipbuilders for these clusters. While the secretary did not comment on the required investment for these projects, it is estimated that about Rs 2 trillion would be required to develop the infrastructure over five to six years. The investment is part of the broader Maritime India Vision 2030, which anticipates a total investment of Rs.3-3.5 trillion across ports, shipping, and inland waterways.
In addition, three brownfield facilities will be developed: two in Gujarat (a ship repair facility in Vadinar and a shipbuilding facility in Kandla) and one shipbuilding facility near Cochin Port in Kerala.
Shipping ministry officials have visited shipbuilding hubs in South Korea, Japan, and Scandinavian countries to explore partnerships and joint venture agreements. Ramachandran indicated that some tie-ups between global shipbuilders and Indian private and state-owned companies could materialize soon.
"While we're seeing progress, the global market is still dominated by China, South Korea, and Japan," commented Pushpank Kaushik, CEO & head of business development (subcontinent, middle east and South East Asia) at Jassper Shipping....
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