The Government of India has launched several initiatives to enhance the country’s self-reliance, or “Aatma-nirbhar,” in the shipping sector. These measures aim to strengthen domestic capabilities and reduce dependency on foreign entities. Key steps include:
- Ship Building Financial Assistance Policy (2016-2026): Approved in December 2015, this policy provides financial aid to Indian shipyards. Vessels constructed and delivered within specific timeframes are eligible for assistance, amounting to 20% of the contract price. This assistance decreases by 3% every three years.
- Subsidy Support to Indian Shipping Companies: Launched in 2021 with a budget of ₹1,624 crore, this scheme offers subsidies to Indian shipping companies participating in global tenders for importing government cargo such as crude oil, LPG, coal, and fertilizers.
- Right of First Refusal (ROFR): Grants Indian-flagged vessels priority to match the lowest bid offered by foreign-flagged vessels, promoting Indian tonnage and shipbuilding. The revised ROFR hierarchy favours Indian-built, Indian-flagged, and Indian-owned vessels.
These initiatives have significantly increased Indian tonnage, with 1,530 Indian-flagged vessels totalling 13.7 million Gross Tonnage (GT) as of June 2024. This growth reflects a preference for Indian-flagged vessels over foreign ones, contributing to India’s GDP. This information was provided by Union Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, in a written reply in Rajya Sabha yesterday.
