India calls on South Korea and Japan to participate in domestic shipbuilding’s ‘Maruti moment’
NEW DELHI : India is seeking investment from Korean and Japanese ship manufacturers as part of its ambitions to establish the country as a major global shipbuilding hub.
An Indian delegation has met with authorities and entities in South Korea to access their interest in investing in India towards setting up shipbuilding and repair facilities at its proposed mega shipbuilding parks. A similar exercise is proposed for Japan to access their interest in shipbuilding in India.
“We are looking at Korea for putting up shipbuilding infrastructure in the country. The talks are for both funding as well as technology transfer. Similar exercise is also on with Japan,” said T.K. Ramachandran, Secretary in the Ministry of Ports, Shipping and Waterways.
The ministry’s aim is to lift India from its 22nd position in global shipbuilding to be among the top 10 shipbuilding hubs by 2030 and top 5 by 2047, he added.
“Three coastal states have already expressed their willingness to give land for shipbuilding and repair cluster. Now, we will tie up with companies to put up this cluster,” Ramachandran said.
“Domestic shipbuilding will help achieve the government’s target of controlling at least 5% of global tonnage. Presently we have less than 1% of global tonnage. It is not enough to achieve the targeted economic growth and development of the nation,” said Pushpank Kaushik, Chief executive of Jassper Shipping, a Singapore-based shipping and logistic service provider.
“Domestic shipbuilding will not only support Indian ship owners but will also become an alternate shipbuilding destination away from Vietnam, Korea, Japan and China.”
Indian shipbuilding’s Maruti moment
India wants to replicate in the domestic shipbuilding industry the automobile revolution that began with wooing Japanese carmaker Suzuki Motor Corp. in the 1980s to establish Maruti Suzuki India Ltd, Ramachandran said.
New Delhi wants to invite global shipbuilding giants such as South Korea’s Hanwha Ocean Co. Ltd and Samsung Heavy Industries and Japan’s Mitsubishi Shipbuilding Co. Ltd and Mitsui Engineering and Shipbuilding to India. “All these companies are possible candidates for putting up shipbuilding and repairs infrastructure in the country,” the secretary said.
The Union government is finalising a shipbuilding mission to scale up India’s shipping infrastructure and establish an ecosystem including policy prescriptions and incentives to promote ship manufacturing in the country.
As part of the shipping ministry’s Amrit Kaal Vision 2047 action plan, it has identified 17 initiatives for shipbuilding and repair and ship recycling facilities in India.