By Twesh Mishra
Copyright indiatimes
Sarbananda Sonowal, minister for ports, shipping, and waterways
The government is “actively exploring” tax and policy interventions to strengthen the maritime sector, Sarbananda Sonowal, minister for ports, shipping, and waterways told ET’s Twesh Mishra. In an interview after the Union cabinet approved a ₹70,000 crore plan for the shipbuilding industry on Monday, Sonowal said the aim is to reduce operational inefficiencies, align with global best practices, and promote long-term growth and competitiveness of India’s shipping and shipbuilding ecosystem. Edited excerpts: What is the larger vision behind the shipping package approved by the cabinet? Could you elaborate on its implementation? This package aims to transform India into a design-build-finance-own-repair-recycle powerhouse in the global maritime economy. It seeks to ensure that a larger share of the country’s export-import cargo is carried on Indian-built, Indian-owned vessels. Prime Minister Narendra Modi had recently said both “chips and ships” should be manufactured in the country, and this package is designed to help the country achieve this.Shipbuilding is often called the mother of heavy engineering. It will create stable order pipelines for hulls, engines, propulsion systems, electronics, coatings, steel processing, and outfitting, ensuring sustained activity across the value chain. Have you fixed any timelines for implementing the new scheme in the package?Live Events In the first year, we will operationalise the Maritime Development Fund with its interest subvention window, notify updated shipbuilding assistance guidelines, and roll out the ship-breaking credit-note framework.Within 12-24 months, we expect visible growth in order books, commissioning of brownfield expansions, and ramp-up of vendor parks. By the third year, the first shipbuilding cluster special purpose vehicle will reach advanced stages of development, alongside a measurable rise in Indian-flag carriage. Over 5-6 years, greenfield cluster berths and integrated facilities will begin operations, driving a step-change in India’s shipbuilding output. The schemes are open for new commitments until March 2036. Industry has made a case for some tax sops. After the package, is the government looking at these suggestions?We are actively exploring a range of tax and policy measures aimed at strengthening India’s maritime sector. These include potential reforms related to taxation on vessel registration, Maintenance, Repair, and Overhaul (MRO) services, Tax Deducted at Source (TDS) for maritime professionals, and support for domestic manufacturing of marine grade steel. Will this generate interest among international firms?The engagement is being structured to ensure technology transfer, localisation and long-term capacity building in India. There is strong interest from East Asia and Europe, including global shipbuilders, engine and propulsion majors. Specialised system suppliers in navigation and next-generation fuels such as LNG, methanol, and ammonia are also interested. Several of these discussions are already at Expression of Interest stage.What is the progress on port development? We have a robust pipeline of public private partnership (PPP) projects, which will add about 630 million tonnes per annum (mtpa) capacity. Currently, over 60% of major port cargo is handled through PPPs. By 2030, the capacity is projected to exceed 3,500 mtpa, with PPPs expected to handle 80% of cargo. Seven deep-draft mega ports are expected to be fully operational by then. The entire project pipeline to 2030 represents over ₹1 lakh crore of PPP investments across mechanisation, berth development, and green port initiatives. There is also a large port coming up in Bahuda in Odisha at an estimated investment of ₹21,500 crore.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onmaritime sectorshipbuilding industrytaxation reformsPPP projectsport developmentETNarendra ModiFundUnion CabinetMaritime Development Fund(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
