Container shipping giant A.P. Moller-Maersk A/S is keen to build and repair ships in India, making it the first major global ship owner to show confidence in the nation’s capabilities as the government gives the final touches to a big bang shipbuilding policy to be signed off by the Cabinet soon.
“India has a huge ambition for shipbuilding and Maersk, alongside others, are also looking at shipbuilding and ship repairs,” Capt Prashant Widge, head of ESG & Public Affairs, South Asia, A. P. Moller-Maersk, said at a discussion held by the Baltic and International Maritime Council (BIMCO) in Mumbai on 2 December.
The Copenhagen-based integrated logistics company runs Maersk Line, the world’s second-biggest container carrier.
The proposed shipbuilding policy includes rolling out a ship recycling credit note scheme and a fixed rate of subsidy for local yards for ten years as the government looks to boost shipbuilding as part of a larger driver to step up manufacturing.
According to the proposal, shipyards will get 20% extra as subsidy on the cost of constructing a normal ship, 25% as a subsidy for building special category vessels including oil, gas, chemical tankers and container ships and 30% subsidy for green vessels and other vessels with futuristic technology. The rate of subsidy will be fixed for the duration of the scheme that will run through March 2034 with possible extension up to 2047 to give long-term “visibility” to the yards while booking orders.
Part of Maersk’s attraction to look at building ships in India could be the credit note scheme.
“We’ve been recycling our assets (ships) in India over the last decade. So, we also want to come up the value chain. We’re looking at ship repairs and eventually also shipbuilding opportunities. It’s all looking very positive in India at the moment,” Capt Prashant stated.