Lok Sabha Question No. 4353 (UNSTARRED), answered on 2024-12-20
Subject: Setting up of Ultramodern Ship-Building Yards
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Shri T R Baalu

## GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4353

ANSWERED ON 20.12.2024

## SETTING UP OF ULTRAMODERN SHIP-BUILDING YARDS

4353. SHRI T R BAALU:

## Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state: पȅन , पोत पįरवहन और जलमागŊ मंũी

- (a) whether the Government has decided to set up new ultramodern ship-building and

ship repair yards at an investment of Rs.30,000 crores; (b) if so, the details thereof including the number of Shipyards and their locations; (c) the details of the existing ship-building capacity of India in both public and private sectors; and (d) the details of investments made to augment the capacity and capabilities during the

- last decade in the modernization of ship-building and ship repair facilities in the country?

## ANSWER

## MINISTER OF PORTS, SHIPPING AND WATERWAYS (SHRI SARBANANDA SONOWAL)

(a) to (d)  The details of the existing ship-building capacity of India in both public and private sector is provided in Annexure . To augment the capacity and capabilities in the modernization of ship-building and ship repair facilities in the country, several measures have been taken viz.

- (i).  To  increase  indigenous  shipbuilding  with  regard  to  modern  technologies  and machinery, the Ministry has amended the Shipbuilding Financial Assistance Policy(SBFAP) guidelines on 23.08.2023 to include:
- a)  Wind Turbine Installation Vessel, Windfarm Service and Maintenance Vessel and Self-Propelled Dredgers as specialized vessels which are eligible  to get higher financial  assistance,  over  and  above  ₹40  Crores  which  is  upper  limit  for  nonspecialized vessels.
- b)  Flat 30% Financial Assistance for vessels where main propulsion is achieved by means of green fuels such as Methanol/ Ammonia / Hydrogen fuel cells etc.
- c)  Flat  20%  Financial  Assistance  for  vessels  fitted  with  fully  electric  or  hybrid propulsion system.

(ii).  Funds  allocated  under  SBFAP  for  shipbuilding  contracts  signed  between  April  1, 2016 to March 31, 2026 in Indian Shipyards is Rs. 4,000 crore and the utilization till date is Rs 385.16 crore.

(iii).  Government  of  India  vide  Gazette  Notification  No.  112  dated  April  13,  2016  has included  'Shipyards'  in  the  updated  Harmonized  Master  List  of  Infrastructure  Subsectors.

(iv). In order to promote indigenous shipbuilding, Government has issued guidelines on 19.05.2016 for evaluating and awarding tenders for new shipbuilding orders floated by government departments or agencies including public sector undertakings for acquisition of any type of vessel(s) used by them for Governmental purposes or for their own use. Whenever acquisition of a vessel(s) is undertaken through tendering route, the qualified Indian Shipyards will have a 'Right of First Refusal' to enable them to match the evaluated lowest price offered by the foreign shipyard which is aimed at increasing ship building activities in Indian shipyards.

Further, the Government entities dealing with ship building and ship-owning are advised to ensure local content as per the Government of India Public Procurement (Preference to Make in India) Order, 2017. As per this Order, procurement of ships of less than ₹200 crores is required to be from Indian shipyards.

(v).  The Government, in November, 2021, has released Standard Tug Designs of five variants for use by Major Ports for procurement of tugs to be built in Indian Shipyards.

(vi). To promote indigenous shipbuilding, the Ministry of Ports, Shipping and Waterways on 20.09.2023 has revised the hierarchy of Right of First Refusal (RoFR) to be followed in  any kind of charter of a vessel which is undertaken through a tender process. The revised hierarchy of RoFR is:

- (1) Indian built, Indian flagged and Indian owned
- (2) Indian built, Indian flagged and Indian IFSCA owned
- (3) Foreign built, Indian flagged and Indian owned
- (4) Foreign built, Indian flagged and Indian IFSCA owned
- (5) Indian built, foreign flagged and foreign owned

(vii) In order to achieve the objective of Atmanirbhar Bharat, the Union Cabinet in 2021 had approved a scheme to provide  Rs.  1,624  crore  as  subsidy  over  a  period  of  five years to Indian Shipping Companies in global tenders floated by Ministries/Department and  CPSEs  for  import  of  Government  Cargo.  The  CPSE,  concerned  have  provided subsidy amounting Rs. 213.54 crore upto 08.10.2024.

(viii)  Ministry  of  Ports,  Shipping  & Waterways has launched the Green Tug Transition Programme (GTTP) which aims to reduce carbon emissions and minimize environmental impact by encouraging adoption of environmentally sustainable tugboat operations.

(ix) Government has launched the Harit Nauka guidelines for inland vessels which aim to promote the adoption of greener technologies in inland waterway vessels.

(x) Further, Government of India has released Maritime India Vision 2030 and Maritime Amrit  Kaal  vision  2047,  which  have  assessed  gaps  in  the  existing  shipbuilding capabilities.

Several  rounds  of  stakeholder's  consultation  have  been  done  on  revitalizing shipbuilding sector and the interventions required have been identified.

## ANNEXURE

The details of the existing ship-building capacity of India in public sector is as under:

| S.No   | Name of Shipyard                                    | Ownership                                                    | Deadweight capacity of the yard   |
|--------|-----------------------------------------------------|--------------------------------------------------------------|-----------------------------------|
| 1      | Goa Shipyard Limited                                | Government of India, Ministry of Defence                     | 822600                            |
| 2      | Garden Reach Shipbuilders and Engineers Ltd         | Government of India, Ministry of Defence                     | 822600                            |
| 3      | Hindustan Shipyard Limited                          | Government of India, Ministry of Defence                     | 822600                            |
| 4      | Mazagon Dock Shipbuilders Ltd                       | Government of India, Ministry of Defence                     | 822600                            |
| 5      | Cochin Shipyard Limited                             | Government of India, Ministry of Ports, Shipping & Waterways | 247000                            |
| 6      | Udipi Cochin Shipyard                               | Government of India, Ministry of Ports, Shipping & Waterways | 247000                            |
| 7      | Hooghly Cochin Shipyard Limited                     | Government of India, Ministry of Ports, Shipping & Waterways | 247000                            |
| 8      | Shalimar Works Ltd                                  | Government of West Bengal                                    | 12000                             |
| 9      | Kerala Shipping & Inland Navigation Corporation Ltd | Government of Kerala                                         | 800                               |
|        | Total                                               | Total                                                        | 10,82,400                         |

The details of the existing ship-building capacity of India in private sector is as under:

|   S.No | Name of Shipyard                                   | Ownership   |   Deadweight capacity of the yard |
|--------|----------------------------------------------------|-------------|-----------------------------------|
|      1 | Vijai Marine Services                              | Private     |                             12000 |
|      2 | Mandovi Drydocks                                   | Private     |                             12000 |
|      3 | L &T Shipbuilding Limited                          | Private     |                             26000 |
|      4 | Shoft Shipyard Private Limited                     | Private     |                             36000 |
|      5 | Chowgule And Company Pvt. Ltd.                     | Private     |                              7000 |
|      6 | Titagarh Wagons Limited                            | Private     |                              6000 |
|      7 | Dempo Shipbuilding and Engineering Private Limited | Private     |                             18000 |
|      8 | Marine Frontiers Private Limited                   | Private     |                               300 |
|      9 | Navgathi Marine Design And Constructions Pvt Ltd   | Private     |                              7000 |

| 10.   | Konkan Barge Builders Pvt Ltd                   | Private   | 3000      |
|-------|-------------------------------------------------|-----------|-----------|
| 11.   | Waterways Shipyard Pvt Ltd                      | Private   | 10000     |
| 12.   | Synergy Shipbuilders                            | Private   | 10000     |
| 13.   | San Marine Shipyard                             | Private   | 8000      |
| 14.   | A H Wadia Boat Builders                         | Private   | 300       |
| 15.   | MOC Shipyards Private Limited                   | Private   | 3000      |
| 16.   | Zuari Shipyard Private Limited                  | Private   | 9000      |
| 17.   | Victoria Shipbuilding And Engineerings LLP      | Private   | 8000      |
| 18.   | Atreya Shipyard Private Limited                 | Private   | 6000      |
| 19.   | Navalt Solar And Electric Boats Private Limited | Private   | 1600      |
| 20.   | A C Roy Shipbuilders Private Limited            | Private   | 3000      |
| 21.   | Chowgule Sbd Private Limited                    | Private   | 32000     |
| 22.   | Sea Blue Shipyard Ltd                           | Private   | 5000      |
| 23.   | Island Ship Repairers                           | Private   | 5000      |
| 24.   | Bristol Boats Pvt, Ltd                          | Private   | 200       |
| 25.   | West Coast Shipyard Ltd                         | Private   | 5000      |
| 26.   | Aquarius Shipyard Pvt. Ltd.                     | Private   | 2000      |
| 27.   | Swan's Pipavav Shipyard                         | Private   | 900000    |
| 28.   | Praka Engineering shipyard                      | Private   | 20000     |
| 29.   | Modest Infrastructure Pvt. Ltd                  | Private   | 6000      |
| 30.   | Master Shipyard Pvt Ltd                         | Private   | 4000      |
| 31.   | Suryadipta Shipyard                             | Private   | 6000      |
| 32.   | Essfour Engineering Pvt. Ltd.                   | Private   | 3000      |
| 33.   | Solas Marine                                    | Private   | 2100      |
| 34.   | Majestic Dockyard Pvt. Ltd                      | Private   | 3000      |
|       | Total                                           | Total     | 11,79,500 |

Total Deadweight capacity of the public and private yards:  22,61,900

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