KOCHI: In a move to revitalise India’s shipbuilding industry, the latest budget has set its sights on enhancing the nation’s shipbuilding capacity. At the forefront of this initiative is Cochin Shipyard Ltd (CSL), which has invested in new facilities for ship-making and repair.
Experts predict that the budget’s incentives and focus on shipbuilding will have a profound impact on Kerala’s maritime landscape, driving growth and innovation in the state’s shipbuilding and ancillary industries.
Madhu S Nair, chairman and managing director of CSL, hailed the budget as “absolutely historic” for the shipbuilding sector.
“We feel elated that our belief in the government’s policy has been validated,” he said. “Our investments of Rs 3,500 crore have been vindicated, and we’re confident that this development will augur well for the economy and the sector.”
“The Maritime Development Fund is poised to significantly enhance India’s competitiveness in the global maritime sector. With large ships now included in the Harmonized Master List (HML) and granted infrastructure status, they can access longer-term, lower-cost capital expenditure funding. This development aligns perfectly with our new dry dock, specifically designed to accommodate large ships,” he said.
Nair pointed out that the shipbuilding industry has a profound cascading effect on employment generation and economic activities. Moreover, shipping and shipbuilding play a strategic role in propelling India’s growth into a major economy. Kerala Maritime Board chairman N S Pillai welcomed the incentives offered in the latest budget, stating that they will greatly benefit potential investors interested in Kerala’s shipbuilding and ancillary industries.
“We’re ready to lease land for 30-40 years to attract investors,” Pillai said, “and we’re hopeful that these new incentives will draw in fresh investment to the state.” D Dhanuraj, chairman of the Kochi-based think tank Centre for Public Policy Research (CPPR), hailed the extension of the tonnage tax scheme to inland vessels, citing its potential to boost domestic vessel registration and encourage indigenous manufacturing.
“This move will incentivise Indian companies to secure more orders and build vessels within the country, rather than resorting to overseas construction and subsequent imports,” Dhanuraj explained.