Government Weighs Incentives to Boost Domestic Shipping

21 Jan 2025 CW Team

A senior government official stated that the initiatives aim to address demands from the domestic shipping industry to enhance global competitiveness. The focus will be on promoting local manufacturing of larger, high-end ships designed for intercontinental trade.

Proposals under consideration include reducing or removing withholding tax on income earned by foreign-based original equipment manufacturers (OEMs) in the shipbuilding sector. Additionally, exemptions from Tax Deducted at Source (TDS) on the income of Indian seafarers aboard domestic-flagged ships have been suggested to align them with their counterparts on foreign-flagged ships.

The ministry has also proposed an exemption from basic customs duty (BCD) on capital goods and components used in shipbuilding. Discussions are ongoing, with the Finance Ministry expected to weigh revenue implications before making a decision in the upcoming budget on February 1.

The government is in talks with global shipbuilding companies to establish local manufacturing facilities in India. Planned support measures for 2025 include financing shipbuilding and recycling projects. India has already outlined plans for three large shipbuilding and repair clusters, with the current shipbuilding financial assistance program set to be extended beyond its 2026 deadline.

A Rs 300 billion Maritime Development Fund is also in the pipeline, complemented by a credit note scheme to incentivise ship owners to scrap older vessels and construct replacements domestically. These efforts aim to position India as a global leader in the shipping and maritime industry.

(ET)

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The government is evaluating a series of incentives to bolster the domestic shipping sector, including support for ship manufacturing and tax breaks for industry operations. The Ministry of Ports, Shipping, and Waterways (MoPSW) is collaborating with the Finance Ministry to finalise these measures, officials said.A senior government official stated that the initiatives aim to address demands from the domestic shipping industry to enhance global competitiveness. The focus will be on promoting local manufacturing of larger, high-end ships designed for intercontinental trade.Proposals under consideration include reducing or removing withholding tax on income earned by foreign-based original equipment manufacturers (OEMs) in the shipbuilding sector. Additionally, exemptions from Tax Deducted at Source (TDS) on the income of Indian seafarers aboard domestic-flagged ships have been suggested to align them with their counterparts on foreign-flagged ships.The ministry has also proposed an exemption from basic customs duty (BCD) on capital goods and components used in shipbuilding. Discussions are ongoing, with the Finance Ministry expected to weigh revenue implications before making a decision in the upcoming budget on February 1.The government is in talks with global shipbuilding companies to establish local manufacturing facilities in India. Planned support measures for 2025 include financing shipbuilding and recycling projects. India has already outlined plans for three large shipbuilding and repair clusters, with the current shipbuilding financial assistance program set to be extended beyond its 2026 deadline.A Rs 300 billion Maritime Development Fund is also in the pipeline, complemented by a credit note scheme to incentivise ship owners to scrap older vessels and construct replacements domestically. These efforts aim to position India as a global leader in the shipping and maritime industry.(ET)

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..