Lok Sabha Question No. 1012 (UNSTARRED), answered on 2023-12-08
Subject: Promotion of Ship Building
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: P. C. Mohan

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

## LOK SABHA UNSTARRED QUESTION NO. 1012

ANSWERED ON 08/12/2023

## PROMOTION OF SHIP BUILDING

## 1012.  SHRI P.C MOHAN:

Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state:

## पȅन , पोतपįरवहनऔरजलमागŊमंũी

(a) the current status of the ship building industry in India; (b) the measures taken by the Government to promote and support the ship building

- industry particularly in terms of enhancing competitiveness and innovation; and
- (c) the initiatives/regulations implemented by the Government to promote sustainable and eco-friendly practices in the ship building industry?

## ANSWER

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

- (a) to (c)34 number of shipyards in the country have built and delivered 780 vessels in the last 10 years period. Under the Shipbuilding Financial Assistance Policy (SBFAP) scheme, 31 Shipyards have registered for the scheme. From 2016, the shipyards have submitted  170  online applications for financial assistance  under  the  scheme for more than 250 vessels catering to domestic as well as international market.
- (i) Revision of the criteria for Right of First refusal(ROFR):

The criteria for granting the Right of First Refusal in chartering of vessels through tender process has been revised. 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

This is to promote demand of Indian built vessels as the Indian built vessels will have the  priority  in  chartering  and  also  to  provide  additional  market  access  and  business support to ships built in India.

(ii)  The  Shipbuilding  Financial  Assistance  is  provided  to  Indian  Shipyards  in  order to promote  the  Indian  Shipbuilding  Industry  and  to  enable  them  to  acquire  global Shipbuilding Contracts while competing in International markets.

(iii) The Ministry has promulgatedSoP for procurement/charter of Tugs by Major Ports in India as per which Tugs required for services of all Major Ports shall be built in Indian Shipyards as per standardized design.

To promotesustainable and eco-friendly practices in the ship building industry such as Green fuelled ships and to make Indian shipyards competitive in international market, SBFA policy  has  been  revised  to  include  a  financial  assistance  of  30%    for  vessels where  main  propulsion  is  achieved  by  means  of  green  fuels  such  as  Methanol/ Ammonia / Hydrogen fuel cells and financial assistance of 20% is provided for vessels with electric means of propulsion or vessels fitted with hybrid propulsion system.

The Government has establishedthe National Centre of Excellence in Green Ports and Shipping  (NCoEGPS)  with  the  aim  to  identify  the  technologies,  alternative  fuels, renewable energy sources and targets for the shipping and port sector to reduce GHG emissions  in  line  with  the  Govt.  of  India  commitment  for  the  sector.The  broad  focus areas of NCoEGPS are as follows:

- i. Policy, Regulatory and Research
- ii. Human Resource development
- iii. Network- Key Partners and Strategic collaborators
- iv. Explore- Area of work, outcomes, projects and resources
- v. Engage- Past events, upcoming events, dissemination

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