The Indian coastal shipping industry has expressed disappointment over the recently announced eligibility criteria for infrastructure status, which industry representatives say unfairly excludes the majority of vessels operating in coastal waters.
On September 19, the Ministry of Finance granted infrastructure status to Indian-owned and flagged commercial ships with a gross tonnage (GT) of 10,000 and above, or Indian-built, owned, and flagged ships of 1,500 GT or more. While the move has been welcomed as a boost for large fleet owners, it has also sparked criticism from coastal shipping operators who say they have been left out.
“After years of lobbying, we’ve been given nothing,” said Rakesh Singh, President of the Indian Coastal Ship Owners’ Association. “More than 500 vessels — tugs, dredgers, offshore support ships — which are critical to port operations and the offshore oil industry, will not benefit under the current criteria.”
India has around 1,500 ships registered under the Merchant Shipping Act, with nearly 1,000 designated as coastal vessels. Industry stakeholders argue that the Finance Ministry’s eligibility norms leave out a significant portion of the domestic shipping ecosystem that provides essential last-mile maritime services.
Singh noted that the decision contradicts the spirit of the newly enacted Coastal Shipping Act, which aims to promote domestic coastal transport, as well as the Maritime India Vision 2030 and Amrit Kaal Maritime Vision 2047.
“There is a glaring mismatch between policy intent and implementation,” he said. “This policy doesn’t support MSMEs in the sector, despite the Prime Minister’s recent emphasis on self-reliance and domestic production.”
Stakeholders had recommended a more inclusive benchmark — either vessels of 500 GT or 24 meters in length — which would have covered a wider range of ships, particularly those used in coastal and inland water transport. The Finance Ministry, however, stuck to higher thresholds, effectively denying smaller operators access to long-term, low-cost financing tied to infrastructure status.
While the new policy is a welcome step for large vessel owners, coastal operators fear it could deepen the existing disparity in access to capital and hinder the development of a truly integrated domestic maritime ecosystem.
“This was an opportunity to truly empower coastal shipping — and it has been missed,” Singh said.
