India to Greenlight Rs 250 Bn for Shipbuilding and Infrastructure

12 Sep 2024 CW Team

The Indian government is expected to approve a Maritime Development Fund (MDF) worth Rs 250 billion later this month. The fund is designed to provide long-term, low-cost financial support for indigenous shipbuilding and blue water infrastructure projects. This initiative aligns with the Make-in-India campaign, which seeks to establish India as a global manufacturing hub.

The MDF is anticipated to be structured as a corporate entity with the government holding a minority stake of at least 26 per cent. The majority shareholding will be allocated to multilateral financial institutions and global funds. It will offer various forms of financial support, including debt, equity, viability gap funding (VGF), and buyer credit. Although similar to the National Bank for Financing Infrastructure and Development (NaBFID), the MDF will focus specifically on the maritime sector.

The fund will have a corpus of Rs 250 billion over seven years and will provide long-term loans of up to 25 years, matching the 30-year lifespan of vessels.

As of December 2023, India's fleet comprises 1,526 vessels with a gross tonnage (GT) of 14 million. Approximately 44 per cent of these vessels are over 20 years old, indicating a need for replacement in the near future.

This development follows inter-ministerial consultations, with a final cabinet note expected to be submitted for approval by the end of September.

The MDF aims to achieve several key objectives:

Promote domestic shipbuilding of all types and sizes to reduce dependence on foreign ships. Currently, India spends nearly $75 billion annually on leasing ships and controls only 2 per cent of the world's total tonnage.
Increase India's share of the global shipbuilding market from less than 1 per cent to 5 per cent, which is currently dominated by China, South Korea, and Japan.

Infrastructure Energy

19 Sep 2025

J&K CM Rules Out Power Privatisation, Focuses on Sector Reform

Jammu and Kashmir Chief Minister Omar Abdullah has dismissed speculation regarding privatisation of electricity in the Union Territory, emphasising that his priority is to strengthen and reform the power sector.“We are not discussing privatisation. By reducing losses, improving billing efficiency, and enhancing revenue, there will be no need for it. My vision is to strengthen and reform the power sector in J&K,” Abdullah stated.He addressed the gathering at the 58th Engineers’ Day at SKICC on Monday evening, an event honouring Bharat Ratna Sir M Visvesvaraya for his pioneering contri..

Mumbai’s Sassoon Dock to Get Tech-Driven Modernisation with Finland

The Maharashtra government, in collaboration with Finland, will modernise Mumbai’s historic Sassoon Dock using advanced technology, state minister Nitesh Rane announced on Wednesday.Rane met a delegation of Finnish officials and representatives of Finnish companies at the dock to discuss strategic plans for upgrading the facility in south Mumbai, according to an official statement.Built in the 19th century, Sassoon Dock is one of Mumbai’s oldest and busiest fishing harbours. Operations currently exceed its original capacity, raising concerns over hygiene, odour, fish handling standards, an..

Agarwal Industrial Wins Rs 3.3 Billion IOCL Bitumen Tender

Agarwal Industrial Corporation rose 3.84 per cent to Rs 945.65 after announcing it had secured a prestigious tender from Indian Oil Corporation (IOCL) worth Rs 3.3 billion.In a regulatory filing during market hours, the company confirmed it had won the tender to supply Bulk Bitumen (VG-30 and VG-40 grades) to IOCL’s Kakinada locations.The firm quantity under the award totals around 60,500 tonnes across 11 parcels, while the optional quantity is approximately 33,000 tonnes across six parcels. This brings the total awarded quantity to roughly 93,500 tonnes. At current market prices, the firm o..