In a bid to revitalize areas surrounding major ports, the Shipping Ministry is crafting a new township policy, sources have said.
This policy will enable the development of townships near ports, leveraging the extensive vacant land available. Private players will be invited to bid for developing the real estate, starting with key ports in Mumbai, Kolkata, Chennai, and Vishakapatnam, with plans to include all ports eventually, the sources added.
A substantial Rs 5,000-crore package is also being prepared under a new viability gap funding (VGF) scheme. This initiative aims to encourage the construction of inland vessels, with future plans to extend support to the manufacturing of sea-bound vessels, including cruise ships, according to another source, another source said.
As part of the government’s 100-day agenda, there is a significant push to introduce more vessels powered by cleaner fuels, such as electric and hydrogen, under the Harit Nauka scheme. The centre is keen to build stakeholder confidence in the maritime sector, promoting a transition to greener and cleaner fuels, as highlighted in the Harit Nauka – Inland Vessels Green Transition Guidelines published on January 8, 2024.
The initiative aims to fully transition to low or zero-emission fuel sources, targeting 100 per cent green vessels in Indian waters by 2047.
Sources also said that the government is also focusing on promoting shipbuilding and repair within India, aiming to develop a robust ecosystem and infrastructure. Discussions are ongoing about expanding incentives to make shipbuilding and repair more attractive, potentially increasing the current 20 per cent capital support and expanding the ambit of ships that come for build and repairs. This move is intended to boost India’s presence in the global shipbuilding market, where it currently holds less than a one per cent share, far behind China, South Korea, and Japan.
The government is also planning to deploy its first hydrogen fuel cell vessel in Prime Minister Modi’s constituency, Varanasi, by August. This initiative is a testament to the country’s commitment to pioneering green technology in the maritime sector, the source said.
According to ministry data, as of December 31, 2022, India had a fleet of 1,520 vessels with a gross tonnage (GT) of 13.69 million, up from 1,491 vessels and 12.99 million GT a year earlier. This represents a net addition of 29 vessels and an increase of 0.7 million GT in 2022. The Directorate General of Shipping projects a marginal growth in the fleet to around 1,530 vessels and an increase in gross tonnage to approximately 14 million GT by December 2023.