Sonowal Charts Course to Save $350 Billion with 112-Vessel Fleet

Union Shipping Minister Sarbananda Sonowal has announced plans to construct 112 vessels through joint ventures with oil public sector undertakings (PSUs), with the goal of saving approximately USD 75 billion annually in foreign exchange currently spent on freight to foreign shipping lines. Over the long term, this initiative is projected to save USD 350 billion by 2047.

Speaking at the Visakhapatnam Port Authority, the Minister outlined several key government initiatives aimed at boosting India’s shipbuilding and maritime capabilities. A comprehensive ₹69,725 crore package has been approved to promote shipbuilding, modernization, and global competitiveness in the sector.

Key components of the maritime reform strategy include:

Extension of the Shipbuilding Financial Assistance Scheme (SBFAS) to 2036, with a funding allocation of ₹24,736 crore to support Indian shipyards

Establishment of a ₹25,000 crore Maritime Development Fund (MDF) to facilitate long-term, low-cost financing for maritime infrastructure

Launch of the Shipbuilding Development Scheme (SbDS) with ₹19,989 crore, targeting expansion of domestic shipbuilding capacity to 4.5 million gross tonnage per annum

The government is also introducing structural reforms such as customs duty exemptions, tonnage tax revisions, and granting infrastructure status to the construction of large vessels to create a globally competitive maritime ecosystem.

Minister Sonowal also marked a milestone by welcoming India’s first Very Large Gas Carrier (VLGC), Shivalik, at Visakhapatnam Port, symbolizing a new chapter in the country’s energy and shipping self-reliance.

News by Rahul Yelligetti.