Ship building, Ship Repair and Ship Recycling Sector
The Indian Shipbuilding, Ship Repair and Ship Recycling industry plays a very important role in the Maritime Sector of the country. This industry is key to bringing about economic prosperity for the large number of people living in the coastal regions of the country by providing employment, increasing maritime trade and helping promote ancillary industries, such as steel, light engineering etc.
India currently has 28 shipyards, 6 under Central Public Sector, 2 under State Governments and 20 under private Sector. India has demonstrated strong shipbuilding capability in past with several shipyards delivering good quality vessels globally.
In order to boost participation from leading global maritime sector organizations, 100% Foreign Direct Investment (FDI) is also permitted in the Shipbuilding sector. Additionally, Government of India has taken various initiatives to boost the shipbuilding industry, such as;
The sector with one of the highest job multipliers, this has led to approximately 1.8 to 2 Lakh jobs (direct and indirect) generation in past few years.
Future of ship building is expected to be driven by green technology, autonomous vessels, and cost-efficient technologies. India has significant opportunity to build scale in short sea vessel segment.
Maritime India Vision 2030 envisions Indian ship building industry to rebuild the threshold scale by 2025 and initiate a ‘Virtuous Cycle’ to enable “Make in India, Make for World”.
India’s share in global ship repair industry is less than 1%; however the country’s strategic location is favourable with 7 to 9% of the global trade passing within 300 NM of the coastline. Additionally, India is poised well to offer repair services to Indian Navy and the allies US Navy’s 5th and 7th fleet in Indian Ocean & Arabian Sea.
Potential locations have been identified to setup Ship repair Centres of Excellence throughout the country with key focus on thought leadership, capability build and ancillary development.
Four key interventions have been identified to promote domestic ship repair facilities with additional INR 4,000 to 5,000 Crore market potential and 30,000 to 35,000 addition annual employment potential, while planned repairs of vessels for all contracts under INR 200 Cr. value to be carried out through local shipyards under ‘Atmanirbhar Bharat’ provisions.
As of 2020, Ship breaking in India takes place mainly at Alang-Sosiya in Gujarat, with limited capacities available at Kolkata, Kerala, and Mumbai as well.
The Alang-Sosiya Ship Breaking and Recycling Yard located in Gujarat is the one of the largest Ship Recycling Yards in the world. This yard was developed by the Gujarat Maritime Board in 1982 and has the capacity to recycle about 450 ships per year generating more than 4.5 million tonnes of re-rollable steel per annum. There are 167 plots available for ship recycling spread over a 10 km stretch along the coast of Alang.
Maritime India Vision 2030 focuses on initiatives such as setting up ship recycling facilitation centre to promote ship recycling activities and enhance marketability of ship by-products through trade fairs at ship breaking yards involving stakeholders across shipowners to downstream industries.
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