The Maritime Development Fund (MDF) is a significant initiative set to launch with a corpus of ₹25,000 crore by 2030. It aims to transform India's shipbuilding landscape by attracting a balanced equity investment of 49% from the central government and 51% from major ports, financial institutions, private investors, and sovereign funds. The MDF will primarily focus on funding projects related to shipbuilding, recycling, and the establishment of industrial clusters.
Under the Shipbuilding Financial Assistance Plan (SBFAP), ₹18,000 crore has been earmarked to provide vital financial support to shipbuilders. This funding is designed to enhance production capacities and encourage the adoption of advanced technologies, particularly for specialized and green-fueled ships.
SBFAP 2.0 marks a significant improvement over its predecessor by addressing previous inefficiencies. The new plan simplifies compliance requirements and enhances incentives. It features a flat, non-reducing subsidy structure aimed at promoting the adoption of eco-friendly ships, reflecting a shift towards sustainable maritime practices.
There has been considerable interest from both domestic and international shipbuilders in India's shipbuilding clusters. Notably, shipbuilders from leading countries such as South Korea and Japan have expressed enthusiasm for collaborating with India to develop these clusters further.
Coastal states in India are actively collaborating with central ministries to identify and develop suitable locations for new shipyards. Feasibility studies are currently underway to ensure these developments align with essential industrial requirements, including road, rail, and port connectivity.
The global shipbuilding market is projected to reach $7.6 billion by 2032, creating a substantial opportunity for India. Budgetary measures are being introduced to support ship recycling in accordance with international regulations, which will promote sustainability while enhancing profitability in this sector.
Q1. What is the purpose of the Maritime Development Fund?
Answer: The MDF aims to enhance India's shipbuilding capabilities by attracting investments and funding projects focused on shipbuilding, recycling, and industrial clusters.
Q2. How much funding is allocated under SBFAP 2.0?
Answer: A total of ₹18,000 crore has been allocated under SBFAP 2.0 to support shipbuilders in expanding their production and adopting advanced technologies.
Q3. What are the key improvements in SBFAP 2.0?
Answer: SBFAP 2.0 simplifies compliance, provides better incentives, and promotes a flat subsidy structure, focusing on eco-friendly vessels.
Q4. Who is interested in India's shipbuilding clusters?
Answer: Both domestic and international shipbuilders, particularly from South Korea and Japan, have shown interest in collaborating to develop shipbuilding clusters in India.
Q5. What is the expected growth of the global shipbuilding market?
Answer: The global shipbuilding market is projected to grow to $7.6 billion by 2032, presenting a significant opportunity for India in this sector.
Question 1: What is the corpus of the Maritime Development Fund?
A) ₹15,000 crore
B) ₹25,000 crore
C) ₹30,000 crore
D) ₹50,000 crore
Correct Answer: B
Question 2: How much funding is allocated to shipbuilders under SBFAP 2.0?
A) ₹8,000 crore
B) ₹12,000 crore
C) ₹18,000 crore
D) ₹20,000 crore
Correct Answer: C
Question 3: Which countries have shown interest in India's shipbuilding clusters?
A) USA and Canada
B) Germany and France
C) South Korea and Japan
D) Australia and New Zealand
Correct Answer: C
Question 4: What is a significant feature of SBFAP 2.0 compared to its predecessor?
A) Increased compliance requirements
B) Non-reducing subsidy structure
C) Higher interest rates
D) Limited funding opportunities
Correct Answer: B
Question 5: What is the projected value of the global shipbuilding market by 2032?
A) $5.5 billion
B) $6.8 billion
C) $7.6 billion
D) $8.2 billion
Correct Answer: C
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