India to build 112 vessels in JV with PSUs: Shipping Minister
This programme will reduce freight costs up to ₹6 trillion in foreign exchange spent each year.
The Union Ministry of Port, Shipping and Waterways, Sarbananda Sonowal, announced a plan to construct 112 vessels through Joint Ventures (JV) with Public Sector Units (PSUs), an initiative projected to save $350 billion in foreign exchange by 2047.
Addressing a meeting at the Visakhapatnam Port Authority, Sonowal revealed that the Shipping Corporation of India (SCI) is currently working with oil PSUs to aggregate demand for the 112 vessels.
“The initiative is expected to contribute to the nation’s efforts to save $75 billion (₹6 trillion) in foreign exchange paid annually towards freight charges to foreign shipping lines,” the minister said.
Minister Sonowal further outlined a robust financial and policy framework supporting this maritime transformation. A ₹69,725 crore (₹697.25 billion) package is allocated for the sector's modernisation and competitiveness.
The Shipbuilding Financial Assistance Scheme (SBFAS) has been extended until 2036 with a ₹24,736 crore (₹247.36 billion) corpus.
Crucially, a Maritime Development Fund (MDF) worth ₹25,000 crore (₹250 billion), including a ₹20,000 crore (₹200 billion) investment fund, has been established to facilitate long-term financing.
Simultaneously, the Shipbuilding Development Scheme (SbDS) with a ₹19,989 crore (₹199.89 billion) outlay is designed to expand India’s domestic shipbuilding capacity to 4.5 million gross tonnage annually.
Coupled with granting infrastructure status for large vessels, customs duty exemptions for shipbuilding components, and the extension of the tonnage tax regime to inland vessels, these measures are collectively laying the foundation of a globally competitive maritime ecosystem.
The announcement was made while welcoming the country’s third Very Large Gas Carrier (VLGC), Shivalik, under the Indian flag.
The induction of the 82,000 CBM, 225-meter-long carrier, built in South Korea, was highlighted reflecting India’s growing capacity for Atmanirbharata (self-reliance) in shipping and bolstering its energy security and global energy trade participation.
