India seeks to become a global hub for building ships

NEW DELHI: India is trying to become a global hub for building ships and push up local ship ownership. It is mapping a course to become a shipbuilding powerhouse by forging strategic joint ventures between its state-owned enterprises and maritime giants from South Korea and Japan, two people aware of the plans said.

- BY S VENKAT NARAYAN Our Special Correspondent

India’s share of global shipbuilding at the moment is below 1%. The government’s projection is to raise the share of Indian-built ships in India’s fleet from 5% at present to 7% by 2030 and 69% by 2047 under the Atma Nirbhar Bharat (Self Sufficient India) initiative.

Under the Maritime Vision 2030 and Vision 2047 plan, the government is targeting to make India one of the top 10 and among top five ship-building and ship-owning countries worldwide, respectively.

The plan is to set four mega shipbuilding parks, two each on the east and west coasts. Shipping minister Sarbananda Sonowal has said that two shipbuilding parks would be made operational by 2030, eyeing a share of the $100-billion global shipbuilding market.

State-run enterprises are engaging companies including Hyundai Heavy Industries and Hanwha of South Korea and Mitsui of Japan in an ambitious bid to secure a larger share of the global demand and reduce India's reliance on overstretched Asian shipyards.

State-owned Cochin Shipyard Ltd (CSL) may join hands with Hyundai Heavy Industries for a new facility in Kochi, the people said on the condition of anonymity. Cochin Shipyard confirmed the talks, but did not identify the future partner. A Hyundai team had visited India early this year for a preliminary survey for investing in Indian shipbuilding.

“We are close to signing a deal with an overseas shipbuilder from Korea or Japan that would be making hulls for large ships," Madhu S. Nair, chairman and managing director, Cochin Shipyard, said.