+
Shipping Ministry Plans Rs 250 Bn Maritime Development Fund
PORTS & SHIPPING

Shipping Ministry Plans Rs 250 Bn Maritime Development Fund

The Ministry of Ports, Shipping and Waterways is preparing to launch a Rs 250 billion Maritime Development Fund (MDF) within the next three to six months, alongside a parallel fund of about Rs 250 billion for shipbuilding clusters. Cabinet note preparations are underway, with both proposals expected to be taken up for approval soon.

The MDF, announced in the Union Budget earlier this year, is aimed at providing low-cost, long-term financing for the shipping and port ecosystem. The fund will adopt a blended finance model, with 49 per cent of the capital coming as concessional government support and the remaining 51 per cent through commercial sources. Despite this structure, the government will retain ownership and control.

The fund will target maritime infrastructure projects for both major ports and private stakeholders and will offer multiple financial instruments to attract domestic and international investors. The Sagarmala Development Finance Corporation, a non-banking finance company, may play a role in disbursals. Officials said participation from multilateral and bilateral agencies, sovereign wealth funds and global investors is expected.

In parallel, a separate fund for shipbuilding clusters is being considered to strengthen India’s capacity in shipbuilding and repair, reduce dependence on foreign yards and create a globally competitive ecosystem. The clusters are expected to include infrastructure development, skilling initiatives and technology support. A blended finance model is also being explored, with central and state governments, ports and shipyards contributing to the fund.

The initiatives follow Parliament’s recent approval of five maritime Bills aimed at replacing colonial-era legislation and improving ease of doing business in the sector.

News source: The Hindu Businessline

The Ministry of Ports, Shipping and Waterways is preparing to launch a Rs 250 billion Maritime Development Fund (MDF) within the next three to six months, alongside a parallel fund of about Rs 250 billion for shipbuilding clusters. Cabinet note preparations are underway, with both proposals expected to be taken up for approval soon.The MDF, announced in the Union Budget earlier this year, is aimed at providing low-cost, long-term financing for the shipping and port ecosystem. The fund will adopt a blended finance model, with 49 per cent of the capital coming as concessional government support and the remaining 51 per cent through commercial sources. Despite this structure, the government will retain ownership and control.The fund will target maritime infrastructure projects for both major ports and private stakeholders and will offer multiple financial instruments to attract domestic and international investors. The Sagarmala Development Finance Corporation, a non-banking finance company, may play a role in disbursals. Officials said participation from multilateral and bilateral agencies, sovereign wealth funds and global investors is expected.In parallel, a separate fund for shipbuilding clusters is being considered to strengthen India’s capacity in shipbuilding and repair, reduce dependence on foreign yards and create a globally competitive ecosystem. The clusters are expected to include infrastructure development, skilling initiatives and technology support. A blended finance model is also being explored, with central and state governments, ports and shipyards contributing to the fund.The initiatives follow Parliament’s recent approval of five maritime Bills aimed at replacing colonial-era legislation and improving ease of doing business in the sector.News source: The Hindu Businessline

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code