The scheme, launched last September, aims to make domestic shipyards more competitive by bridging the cost arbitrage with foreign rivals in vessel supply bids. Towards this, Indian bidders will get financial support of 15-25% per vessel.
“These 12 applications are for building ships worth approximately ₹5,812 crore in the country,” a senior official told ET.
Officials said the ₹19,989 crore Shipbuilding Development Scheme (SBDS), focused on setting up and expanding domestic shipyards, has also started gaining momentum.
“In-principle approvals have been granted for the greenfield shipbuilding cluster in Tamil Nadu and for the brownfield expansion proposal of Titagarh Naval Systems,” the official said, adding applications from Andhra Pradesh for greenfield cluster and Swan Defence and Heavy Industries for brownfield expansion have been received and are currently under review.
India has aggregated a demand for 437 vessels worth about ₹2.2 lakh crore by 2042-47.
Vessel procurement bids currently have a right of first refusal policy built in, ensuring prioritised chartering of Indian-flagged or built vessels by government entities.”Indian bidders can match the lowest bid within a 20% margin,” the official said.
These incentive programmes are set to get a boost with the operationalisation of the Bharat Container Shipping Line. This will be a joint venture between Shipping Corporation of India, Container Corporation of India, the Maritime Development Fund, and three major ports: Jawaharlal Nehru Port, V.O. Chidambaranar, and Chennai, officials said.
“A cabinet note has been circulated for inter-ministerial consultation,” the official said, adding joint venture incorporation will happen “within 3-4 months of cabinet approval.”
The plan is to build a fleet of 51 container vessels over 15 years spanning feeder-size ships to ultra-large 18,000 TEU vessels, the official said, adding the structure of Bharat Container Shipping Line is currently being finalised.