India's maritime sector gets booster shot as MoUs inked for Rs 66,000 crore investment

New Delhi, Sep 28 (IANS) As many as 27 collaborative agreements have been signed with an investment potential of over Rs 66,000 crore in India’s maritime and shipbuilding sector between public and private sector stakeholders, state governments, and international partners, according to an official statement issued on Sunday.

With their collective industrial, socio-economic, and strategic impact, these projects are set to re-position India as a leading global maritime and shipbuilding hub in the next decade, advancing the national resolve of an Atmanirbhar Bharat, the statement said.

The MoUs were signed on September 18 at Bhavnagar on the eve of the “Samudra Se Samriddhi – Transforming India’s Maritime Sector” event addressed by Prime Minister Narendra Modi, in which a number of projects pertaining to the maritime sector were launched. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal was present at the signing ceremonies.

A landmark MoU for an investment of around Rs 21,500 crore was signed between the Paradip Port Authority, the Visakhapatnam Port Authority, the Sagarmala Finance Corporation Limited, and the Odisha government for the development of a new port at Bahuda, with a capacity of 150 million tonnes per annum proposed to be developed on more than 6,700 acres of coastal salt land that have been designated for maritime use. This project is expected to act as an anchor for port-led industrialisation, logistics parks, and manufacturing clusters across Odisha and northern Andhra Pradesh. It is expected to provide direct and indirect employment opportunities to nearly 25,000 people while catalysing new waves of industrial and infrastructure development in eastern India.

Simultaneously, attention was also directed towards sustainable transport solutions, with the signing of an MoU between the Inland Waterways Authority of India and the Bihar government for a Water Metro Project in Patna. Valued at approximately Rs 908 crore, this collaboration proposes to deploy energy-efficient electric ferries, develop modernised terminals, and integrate urban waterways with multimodal systems of public transport.

Sonowal said: "These MoUs are a testament to India’s maritime resurgence. By fostering collaboration between states, industries and global partners, we are unlocking a new era of shipbuilding and port-led growth. This is not only about infrastructure, it is about creating jobs, empowering communities and establishing India as a leading maritime nation in the world."

On the shipping front, a significant step towards India’s energy independence was unveiled through the MoU between the Shipping Corporation of India and the Oil PSUs—IOCL, BPCL, and HPCL—for the creation of a Vessel Owning Joint Venture Company. This is the first in a series of steps that will pool vessel demand from energy PSUs, thereby reducing reliance on foreign shipping fleets.

Another category of MoUs at the ceremony pertained to shipbuilding and its allied clusters. In a move that could fundamentally alter the global perception of India’s shipbuilding capacity, the ministry facilitated MoUs between major ports under it and the Andhra Pradesh, Odisha, Gujarat, Maharashtra, and Tamil Nadu governments for initiating the setting up of shipbuilding clusters.

The ceremony also witnessed many Indian industry collaborations with international players.

A marquee MoU was signed between Cochin Shipyard Limited and HD Korea Shipbuilding & Offshore Engineering, signifying a long-term strategic partnership for building large commercial vessels in India. The partnership will help India construct large carriers such as Suezmax oil tankers, container ships, and bulk carriers with a capacity of up to six ships annually. To feed this facility, CSL announced plans for an 80-acre Block Fabrication Facility (BFF) in Kochi, involving an investment of around Rs 3,700 crore and a throughput potential of 1,20,000 metric tonnes of steel fabrication annually. The plant will create approximately 2,000 direct jobs and several times more indirect employment in allied industries, especially MSMEs and supply chains.

The CSL also signed an MoU with SIPCOT and Guidance Tamil Nadu for the creation of a shipbuilding complex worth Rs 15,000 crore in the state. Besides, Mazagon Dock Shipbuilders Limited entered into a parallel MoU with Guidance Tamil Nadu to set up another large greenfield yard in Thoothukudi.

The Gujarat Maritime Board capitalised on Bhavnagar’s historic shipbuilding tradition by signing multiple agreements with private partners, including Act Infra Ports, Modest Infrastructure, Chowgule and Company, and SWAN Defence. These MoUs, with a total investment exceeding Rs 13,600 crore, outline mega facilities for comprehensive shipbuilding, ship repair, offshore infrastructure and recycling yards spread across the Gulf of Kutch, Nava Ratanpara, Pipavav and other sites.

Complementing these massive infrastructure plans was a suite of MoUs that addressed the critical challenge of sustainable financing for the maritime industry. The Sagarmala Finance Corporation Limited signed agreements with financial institutions such as Neo Fund, NaBFID, IIFCL, and Climate Fund Managers, paving the way for dynamic investments into the maritime sector.

Further underscoring India’s maritime heritage and its role in cultural-economic development, an MoU with an investment of Rs 266 crore was signed between the Directorate General of Lighthouses and Lightships and Indian Port Rail & Roadways Corporation Ltd. for the setting up of the world’s tallest lighthouse museums at a height of 77 metres at the National Maritime Heritage Complex in Gujarat's Lothal.

--IANS

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