For a larger slice of global pie, India seeks anchor role to turn local shipbuilding tide
shipbuilding policy that includes introducing a recycling credit note scheme, a fixed rate of subsidy for 10 years and the establishment of three maritime clusters in Andhra Pradesh, Gujarat and Odisha, officials said. This is part of the Centre's push to grab a larger share of the global shipbuilding market, they added.
It's proposed that a credit note equivalent to 40% of the scrap value of a ship being dismantled in an Indian breaking yard would be given to fleet owners, both Indian and global. This can be reimbursed against the cost of construction of a new vessel at an Indian yard, officials said.
«With this scheme, fleet owners will be encouraged to recycle ships in India,» one of them said. «The only condition is that they will have to build new ships in India to get the benefit of the scheme. If they go outside India to order new ships, the credit note will not be applicable. The idea is to promote Indian yards in the global market and help them get more orders.»
The government is looking to push local shipbuilding by linking it to recycling with the incentive of a credit note.
Offsetting Cost Disadvantage
Alang-Sosiya in Gujarat's Bhavnagar district — home to the world's largest stretch of ship-breaking facilities — beached 125 vessels for recycling in FY24 compared with 131 in the previous year, according to the Gujarat Maritime Board.
India has less than 1% of the global shipbuilding market but aims to break into the top 10 by 2030 and the top five by 2047.
Under the proposal, there will be a
