Large ships are now included in ‘Transport and Logistics’ category of the Infrastructure Harmonized Master List (HML) of Infrastructure Sector, aimed to strengthen domestic shipbuilding and maritime industry.
- A large ship is defined as Commercial Vessel:
- Having a gross tonnage (GT) of 10,000 or more, under the Indian ownership and flag; or
- Having a GT of 1,500 or more which are built in India and are under Indian ownership and flag.
- Significance of inclusion in HML: Access to infrastructure lending at easier terms with enhanced limits, access to larger amounts of funds as external commercial borrowings (ECB), viability gap funding, tax incentives etc.
Status of India’s Shipping Sector
- Foreign Dependence: 95%of India’s trade relies on foreign ships and India pays nearly $75 billion every year to foreign shipping companies for shipping services.
- Share in Shipbuilding: India currently accounts for only 0.06% of global shipbuilding.
- Target: Government is aiming at becoming one of the top five shipbuilding nations by 2047 and according to Maritime Amrit Kaal Vision 2047, government foresees an investment of ₹54 trillion into building indigenous shipping and shipbuilding capabilities by 2047.
- Issues in Shipping Sector: Capital constraints with high borrowing costs, ageing fleet, tax anomalies, skill gaps etc.
Planned Initiatives for strengthening Shipping Sector
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