Lok Sabha Question No. 4158 (UNSTARRED), answered on 2024-12-20
Subject: Development of Infrastructure for Ship Building
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Shri Dulu Mahato, Shri Bidyut Baran Mahato, Shri Dilip Saikia, Shri Yogender Chandolia, Dr. Nishikant Dubey, Shri Lumbaram Choudhary, Shri P P Chaudhary, Shri Anurag Singh Thakur, Shri Anurag Sharma, Shri Kota Srinivasa Poojary

## GOVERNMENT OF INDIA

## MINISTRY OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4158

ANSWERED ON 20.12.2024

## DEVELOPMENT OF INFRASTRUCTURE FOR SHIP BUILDING

4158.  SHRI P P CHAUDHARY:

SHRI DULU MAHATO:

SHRI KOTA SRINIVASA POOJARY:

DR. NISHIKANT DUBEY:

SHRI BIDYUT BARAN MAHATO:

SHRI LUMBA RAM:

SHRI YOGENDER CHANDOLIA:

SHRI ANURAG SHARMA:

SHRI DILIP SAIKIA:

SHRI ANURAG SINGH THAKUR:

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

## पȅन , पोत पįरवहन और जलमागŊ मंũी

- (a) the steps taken/proposed to be taken by the Ministry for developing/enhancement of ship building infrastructure and creating all allied facilities in the country;
- (b)  the  total  amount  of  financial  allocation  sanctioned  for  maritime  infrastructure development during the last three years, project, port and year-wise;
- (c)  whether  any  assessment  has  been made  regarding  gaps  in existing  ship  building capabilities, if so, the steps taken/proposed to be taken by the Government to address them;
- (d)  whether  any  timeline  has  been  fixed  for  completion  of  ongoing  infrastructure projects, if so, the details thereof along with the progress achieved so far in this regard;
- (e) whether there is any plan to include the North Eastern States of the country for the said project; and
- (f) if so, the details thereof?

## ANSWER

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

- (a) to (f) The steps taken/proposed to be taken by the Ministry for developing/enhancement of ship building infrastructure and creating all allied facilities in the country are as under:

(i).  To  increase  indigenous  shipbuilding  with  regard  to  modern  technologies  and machinery, the Ministry has amended the Shipbuilding Financial Assistance Policy(SBFAP) guidelines vide letter no. SY-16023/6/2015-SBR, Part-I 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

(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.

*****