<p data-path-to-node="3" id="p-rc_49962d2755c33d61-328"><span data-path-to-node="3,0"><b data-path-to-node="3,0" data-index-in-node="0">NEW DELHI</b> — In a major policy push to achieve national tonnage autonomy and curb significant capital drainage, the Ministry of Ports, Shipping and Waterways (MoPSW) has advanced a comprehensive fiscal and regulatory reform package designed to add 100 large commercial vessels to India’s national fleet over the next five years</span><span data-path-to-node="3,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="3,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p><p data-path-to-node="4" id="p-rc_49962d2755c33d61-329"><span data-path-to-node="4,0">Following high-level deliberations spearheaded by the National Shipping Board (NSB) during its <i data-path-to-node="4,0" data-index-in-node="95">Sagar Samvad</i> ("Ocean Dialogue") platform, the central government is moving to reverse India's critical reliance on foreign-flagged carriers, which currently drains an estimated $75 billion annually in foreign freight charter bills</span><span data-path-to-node="4,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="4,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p><p data-path-to-node="6"><b data-path-to-node="6" data-index-in-node="0">Bridging the 16–20% Operating Cost Disadvantage</b></p><p data-path-to-node="7" id="p-rc_49962d2755c33d61-330"><span data-path-to-node="7,0">India’s commercial merchant fleet currently carries less than 10% of the country’s total Export-Import (EXIM) trade</span><span data-path-to-node="7,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="7,2">. Panel reviews and submissions by the Indian National Shipowners' Association (INSA) established that operating under the Indian flag remains 16% to 20% costlier than operating under foreign flags of convenience</span><span data-path-to-node="7,3"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="7,4">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p><p data-path-to-node="8">The proposed fiscal framework directly targets key structural cost drivers:</p><ul data-path-to-node="9"><li><p data-path-to-node="9,0,0" id="p-rc_49962d2755c33d61-331"><span data-path-to-node="9,0,0,0"><b data-path-to-node="9,0,0,0" data-index-in-node="0">Taxation Disparities:</b> Rationalizing customs duties and GST on vessel acquisitions, onboard spares, and domestic dry-dock maintenance, alongside reforming withholding taxes levied on Indian seafarers' wages</span><span data-path-to-node="9,0,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="9,0,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li><li><p data-path-to-node="9,1,0" id="p-rc_49962d2755c33d61-332"><span data-path-to-node="9,1,0,0"><b data-path-to-node="9,1,0,0" data-index-in-node="0">Freight and Domestic Levies:</b> Eliminating asymmetric tax burdens on coastal and inland freight movements that foreign-flagged vessels routinely bypass</span><span data-path-to-node="9,1,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="9,1,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li><li><p data-path-to-node="9,2,0" id="p-rc_49962d2755c33d61-333"><span data-path-to-node="9,2,0,0"><b data-path-to-node="9,2,0,0" data-index-in-node="0">Financing Costs:</b> Providing access to low-interest, long-tenure maritime credit to offset steep domestic borrowing costs</span><span data-path-to-node="9,2,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="9,2,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li><li><p data-path-to-node="9,3,0" id="p-rc_49962d2755c33d61-334"><span data-path-to-node="9,3,0,0"><b data-path-to-node="9,3,0,0" data-index-in-node="0">Right of First Refusal (RoFR) Alignment:</b> Ensuring domestic shipowners are not commercially disadvantaged when competing against foreign carriers under public cargo tenders</span><span data-path-to-node="9,3,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="9,3,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li></ul><p data-path-to-node="11"><b data-path-to-node="11" data-index-in-node="0">Financial Backing Under the ₹69,725-Crore Maritime Framework</b></p><p data-path-to-node="12" id="p-rc_49962d2755c33d61-335"><span data-path-to-node="12,0">The fleet augmentation strategy integrates directly with the Union Government's master maritime stimulus package</span><span data-path-to-node="12,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="12,2">:</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p><ul data-path-to-node="13"><li><p data-path-to-node="13,0,0" id="p-rc_49962d2755c33d61-336"><span data-path-to-node="13,0,0,0"><b data-path-to-node="13,0,0,0" data-index-in-node="0">₹25,000-Crore Maritime Development Fund (MDF):</b> Operationalizes low-cost debt and equity financing through a ₹20,000-crore Maritime Investment Fund and a ₹5,000-crore Interest Incentivisation Fund to assist Indian fleet owners in acquiring crude tankers, dry bulk carriers, and container cellular vessels</span><span data-path-to-node="13,0,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="13,0,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li><li><p data-path-to-node="13,1,0" id="p-rc_49962d2755c33d61-337"><span data-path-to-node="13,1,0,0"><b data-path-to-node="13,1,0,0" data-index-in-node="0">₹24,736-Crore Shipbuilding Financial Assistance Scheme (SBFAS):</b> Extended through 2036 to provide up to 25% financial assistance for specialized and green-propulsion vessels constructed at Indian shipyards, supplemented by a ₹4,001-crore Shipbreaking Credit Note scheme</span><span data-path-to-node="13,1,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="13,1,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li><li><p data-path-to-node="13,2,0" id="p-rc_49962d2755c33d61-338"><span data-path-to-node="13,2,0,0"><b data-path-to-node="13,2,0,0" data-index-in-node="0">Cargo Demand Aggregation:</b> Leveraging the <i data-path-to-node="13,2,0,0" data-index-in-node="41">Bharat Container Shipping Line (BCSL)</i> framework to pool public sector undertaking (PSU) cargo—spanning crude oil, fertilizers, coal, and containerized goods—to guarantee baseline cargo volumes for domestic vessels</span><span data-path-to-node="13,2,0,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="13,2,0,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p></li></ul><p data-path-to-node="15"><b data-path-to-node="15" data-index-in-node="0">Workforce Skilling and Long-Term Targets</b></p><p data-path-to-node="16" id="p-rc_49962d2755c33d61-339"><span data-path-to-node="16,0">Alongside vessel acquisitions, the Ministry of Labour & Employment and the Directorate General of Shipping are aligning training pipelines under the re-enacted Merchant Shipping Act to expand India’s share of the global seafaring workforce from 12% to over 20% by 2030</span><span data-path-to-node="16,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="16,2">.</span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515=""><!----></sources-carousel-inline></p><p data-path-to-node="17" id="p-rc_49962d2755c33d61-340"><span data-path-to-node="17,0">By creating structural price parity and unlocking sovereign financing lines, the policy package provides Indian shipowners with the operational certainty needed to scale national tonnage and advance India's <i data-path-to-node="17,0" data-index-in-node="207">Maritime Amrit Kaal Vision 2047</i> objective of entering the top five global ship-owning nations</span><span data-path-to-node="17,1"><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><source-footnote _nghost-ng-c4109436689="" class="ng-star-inserted"><sup _ngcontent-ng-c4109436689="" class="superscript"><!----></sup></source-footnote><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----><!----></span><span data-path-to-node="17,2">.</span></p>
Ministry of Ports and Shipping Progresses Fiscal Reforms to Add 100 Indian-Flagged Commercial Vessels
India’s commercial merchant fleet currently carries less than 10% of the country’s total Export-Import (EXIM) trade. Panel reviews and submissions by the Indian National Shipowners' Association (INSA) established that operating under the Indian flag remains 16% to 20% costlier than operating under foreign flags of convenience.
