The people said on anonymity that state-owned Cochin Shipyard Ltd (CSL) could open a new factory with modern heavy industry. The Cochin Shipyard confirmed the negotiations but did not identify future partners. The Hyundai team visited India early this year to conduct a preliminary investigation to invest in Indian shipbuilding.
“We are close to signing an agreement with overseas shipbuilders from South Korea or Japan that will make hulls for large vessels,” said Madhu S. Nair, chairman and managing director of Cochin Shipyard. “We already have a large 310 m dry dock that new joint ventures can also use to make vessels of different sizes of up to 300 m. Foreign partnerships will help carry the technology and scale required to build large hulls using a large amount of steel. The new facility should be sold on double-digit ships to meet domestic and overseas needs,” added Nair. ”
New facilities
One of the two said the land for the new plant will be provided by the government-owned Cochin Port Trust, close to the existing Kochi Shipyard factory in Kochi, one of the two said. The new facility will build cargo ships, container ships, tankers, dry bulk cargo ships and multi-purpose ships. However, due to the shortcomings of the infrastructure, it does not make a large original carrier (VLCC), but depending on the market conditions, it may be considered later.
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The second person said that in addition, South Korean shipyard Hanwha is building partnerships with government and private entities in India. The company could consider a planned shipyard near the port of Condela, Gujarat, a union government-owned port with ample land and basic infrastructure for shipbuilding and repairs. In addition, the Japanese shipbuilder Mitsui OSK Transport team is expected to be in India around June, the people said. One of the group’s main tasks is to seek local partnerships.
“In the coming months, the first deal for a large shipyard may be reached, with some other deals expected by the end of the year. India’s shipbuilding industry will help the country become a major hub for ships after South Korea, Japan and China,” said the second person.
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Questions sent to the Port Ministry, Modern Heavy Industry, Hanwha Ocean and Mitsui have not been answered yet. MINT reported in September that India is looking for investments from South Korea and Japan to create shipbuilding ambitions.
Transportation enhancement
India is not alone in trying to inject life into its shipbuilding industry. In February, U.S. President Donald Trump paid as much as $1.5 million for Chinese-made ships entering the United States, and both fleets were charged as much as $1 million, which ordered new Chinese and non-Chinese vessels to board Chinese vessels. The move aims to rebuild U.S. shipyards. The global shipbuilding industry is currently dominated by large shipyards in China, South Korea and Japan. However, these facilities are overbooked and wait times range from three to five years.
“The Indian government is seeking investment and technology transfers from countries such as South Korea and Japan,” said Pushpank Kaushik, CEO of Hyderabad-based transport and logistics company Jassper Spirping. “States such as Andhra Pradesh, Gujarat and Odisha have supported support for the establishment of offshore clusters. Detailed briefings were also received from South Korea on high-end and eco-friendly shipbuilding. Large commercial shipbuilding in India remains limited. Despite the presence of 28 ships, there are still 28 ships on board, but there are still domestic captains in the tectonics,” Kaushik added.
Global Hub
India is trying to become a global hub on board and promote local ownership by expanding Indian-made and Indian-owned and marked cargo ships. The country’s share of the global shipbuilding industry remains below 1%. The government’s forecast is that under the Atmanirbhar Bharat initiative, the Indian fleet’s share of Indian fleets will increase from its current 5% to 7% by 2030, and by 2047, the Indian fleet’s share will increase its share to 7% by 2047. The plan is to set up four giant shipbuilding parks on the East Coast and the West Coast. Transport Minister Sarbananda Sonowal said two shipbuilding parks will be put into operation by 2030 and focus on the global shipbuilding market of $100 billion.
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Nair of Cochin Shipyard said that despite the fact that the investment details and the nature of the equity partnership are being formulated, the facility will require investment in thousands of rupees and create jobs for more than 2,000 people. Modern shipyards typically spend $500-600 million on construction, port infrastructure and ancillary services. Since Kochi already has dry dock facilities, new facilities may require fewer ones.
In July last year, MINT reported that in order to establish a domestic shipbuilding market, the Ministry of Transport proposed a joint venture with a public sector oil marketing company to establish a VLCC National Transport Corporation (SCI). This adventure can also be tied to foreign technology partners. Transport Minister Sarbananda Sonowal told MINT in September that the government had launched a huge shipbuilding mission to develop large shipbuilding yards on both coasts, while the ministerial team visited South Korea and Japan to seek their investment in the park, with at least three state governments agreeing to provide land.
Ocean Fund
Earlier this year, the fiscal year 26 budget was proposed ₹The 25,000 Million Marine Development Fund, a government-industrial partnership designed to help develop manufacturing clusters with a focus on shipbuilding and destruction. The budget also proposed to modify existing Shipbuilding Financial Assistance (SBF) policies to address cost disadvantages, while also providing shipbuilding notes to help purchase locally built ships. The budget also includes large vessels in the Main List of Infrastructure Coordinated (HML), allowing for easier purchase of ships while providing basic customs duties on raw materials, parts, consumables or parts to manufacture ships for another 10 years.
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Under the Maritime Vision 2030 and Vision 2047 Plan, the government aims to make India one of the top five shipbuilders and shipbuilders, respectively. The shipbuilding program will also address the concerns about trade, namely the uncertainty and variability of transportation costs that affect its market competitiveness (upgrade). With the availability of domestic transport lines at affordable prices, freight rate fluctuations due to black swan events such as Covid Pandemic, Russia-Ukrainian War and the Red Sea Crisis can also be checked.
