The government could grant infrastructure status to the entire shipping sector, including all kinds of ships and vessels, said people aware of the development. While the shipping ministry had sought the tag only for coastal vessels, the finance ministry is examining a proposal for a wider coverage, they said.The finance ministry has begun consultations with banks and financial institutions, including the National Bank for Financing Infrastructure and Development, a move that will allow the shipping industry to access other forms of financial assistance and concessions, the people said."These are preliminary discussions, and the shipping ministry has also made certain recommendations. We are examining the issue, and the proposed changes can be part of a more comprehensive maritime policy, including shipbuilding and maritime development fund," said a government official, who did not wish to be identified. 115028000At present, shipbuilding and shipyards are granted infrastructure status, allowing them access to long-term low-cost project loans and to issue infrastructure bonds for meeting working capital requirements. Extension of similar benefits to the entire industry is expected to provide a boost to the indigenous shipping industry."There have been various representations on the matter, and accordingly, suggestions have been sought from both banks and other stakeholders. A final decision will be taken only after consultation with the RBI," the official said.Earlier this year, a parliamentary committee had recommended that the government consider extending infrastructure status granted to shipyards to all ships and vessels, not only coastal shipping. It had further made a case for setting up a specialised financing institution or marine finance scheme that could provide a much-needed boost to the shipbuilding industry.As part of the Maritime India Vision 2030, the government is aiming to propel India to the top 10 countries in shipbuilding, a significant jump from its current rank of 22. It has launched the Shipbuilding Financial Assistance Policy scheme, under which financial assistance is offered to domestic shipyards for shipbuilding contracts signed between April 1, 2016, and March 31, 2026, with the rate of financial assistance starting from 20% in 2016 and diminishing to 11% in 2026.The government is also looking to build multiple shipbuilding clusters in five states, including Gujarat, Andhra Pradesh and Maharashtra. The parliamentary committee had also recommended that the government explore the possibility of getting a risk insurance cover scheme for ships in India on the lines of the ones in South Korea and China, which would attract domestic and international investors to participate in financing maritime projects.
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