Indian Government to consider Maritime Development Fund

21 Feb 2024 CW Team

Ramachandran stated, "The government is actively working towards the establishment of the Maritime Development Fund (MDF) to offer low-cost, long-term financial support."

Furthermore, the government is exploring issuing guidelines for establishing Non-Banking Financial Companies (NBFCs) within the International Financial Services Centre (IFSC) to facilitate vessel financing and leasing activities. It is also considering lifting restrictions on foreign portfolio investors (FPIs) regarding investments in ship leasing firms.

In port-related initiatives, plans include extending the shipbuilding financial assistance policy and developing shipbuilding and repair clusters in Mumbai, Kochi, and Chennai. The government aims to invest in the maritime sector under the Blue Economy 2047 initiative.

Ramachandran stressed the government's goal to rationalize port charges by 2030 and explore public-private partnership (PPP) models for towage services and dredging operations. Additionally, the government plans to enhance transparency by mandating the listing of tariffs levied by port enterprises by 2030.

The government is also considering fiscal incentives like tax holidays for the cruise tourism industry and drafting proposals for long-term buyers' credit to facilitate ship marketing. It aims to transition financing from asset-based to cash flow financing and explore a coastal shipping incentive scheme, offering up to a 50% reduction in port dues and terminal handling charges for vessels promoting sustainable shipping practices.

The Indian government, as announced by T K Ramachandran, Secretary of the Ministry of Ports, Shipping, and Waterways during a Confederation of Indian Industry (CII) event, is considering establishing a Maritime Development Fund (MDF) to provide long-term, affordable financial assistance to the shipping sector. Ramachandran outlined two potential approaches for the MDF: integrating a dedicated maritime division within a proposed development finance institution or creating a standalone MDF with predominant ownership by multilateral or bilateral agencies. Ramachandran stated, The government is actively working towards the establishment of the Maritime Development Fund (MDF) to offer low-cost, long-term financial support. Furthermore, the government is exploring issuing guidelines for establishing Non-Banking Financial Companies (NBFCs) within the International Financial Services Centre (IFSC) to facilitate vessel financing and leasing activities. It is also considering lifting restrictions on foreign portfolio investors (FPIs) regarding investments in ship leasing firms. In port-related initiatives, plans include extending the shipbuilding financial assistance policy and developing shipbuilding and repair clusters in Mumbai, Kochi, and Chennai. The government aims to invest in the maritime sector under the Blue Economy 2047 initiative. Ramachandran stressed the government's goal to rationalize port charges by 2030 and explore public-private partnership (PPP) models for towage services and dredging operations. Additionally, the government plans to enhance transparency by mandating the listing of tariffs levied by port enterprises by 2030. The government is also considering fiscal incentives like tax holidays for the cruise tourism industry and drafting proposals for long-term buyers' credit to facilitate ship marketing. It aims to transition financing from asset-based to cash flow financing and explore a coastal shipping incentive scheme, offering up to a 50% reduction in port dues and terminal handling charges for vessels promoting sustainable shipping practices.

Infrastructure Transport

29 Oct 2025

Railways approves major upgrade for Telangana traction lines

The Ministry of Railways has approved the upgradation of the electric traction system in two crucial railway sections — Medchal–Mudkhed (225 km) and Mahbubnagar–Dhone (184 km). The projects, costing Rs 1.93 billion and Rs 1.23 billion respectively, will enhance the electric traction capacity from 1X25 KV to 2X25 KV. The work includes modifications to circuit breakers and switching stations, along with the installation of additional conductors. These routes serve as vital links between Northern and Southern India via Hyderabad. Once completed, the upgraded system will reduce voltage dro..

Infrastructure Transport

29 Oct 2025

Adani to invest Rs 425 billion more in Maharashtra’s Dighi Port

The Adani Group has committed to invest an additional Rs 425 billion in the Dighi Port project, located along Maharashtra’s coastal Konkan belt, government officials announced on Monday. Adani Ports and Special Economic Zone (APSEZ)-run Dighi Ports signed a memorandum of understanding (MoU) with the Maharashtra government to undertake the expansion of the port and related infrastructure. This new commitment comes as part of a broader investment initiative by the state. Chief Minister Devendra Fadnavis said the agreement is among 15 MoUs worth over Rs 560 billion signed during the opening d..

Infrastructure Transport

29 Oct 2025

HUDCO, JNPA sign Rs 50 billion deal for port development

In a strategic move, the Housing and Urban Development Corporation Ltd (HUDCO) has signed a Memorandum of Understanding (MoU) with the Jawaharlal Nehru Port Authority (JNPA) for an investment of Rs 50 billion to revamp and develop port infrastructure. The non-binding agreement is intended to strengthen cooperation on both existing and upcoming infrastructure projects, with a focus on development, financing, and refinancing of port facilities at the Jawaharlal Nehru Port. The MoU was formalised with the signatures of Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, and Unmesh Shar..