Infra status for shipping likely

 

Will facilitate access to long-term, low-cost funding

The government is reportedly preparing to grant infrastructure status to the shipping industry, with the Finance Ministry expected to issue a notification soon. The eligibility criteria being discussed require vessels to have a minimum length of 24 metres, it is learnt. Shipping is capital-intensive, and this change could support domestic vessel acquisitions, particularly from Indian shipyards, thereby boosting indigenous shipbuilding and raising Indian ownership of large vessels. The move is expected to not only strengthen the shipping sector but also improve India’s global standing in maritime infrastructure and shipbuilding. 

While shipyards have benefited from the infrastructure designation for years, shipping companies have so far been left out, depriving them of similar access to long-term, low-cost funding. Granting this status will help bridge that gap and provide a further fillip to the government’s efforts at strengthening India’s maritime ecosystem, as per a report.

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