Hello Readers,
With the Cabinet on the verge of considering detailed proposals piloted by the Ministry of Ports, Shipping and Waterways to implement the announcements made by Finance Minister, Nirmala Sitharaman, in her Budget speech on promoting local shipping and shipbuilding sectors, the National Investment and Infrastructure Fund (NIIF), has taken the first step to look at maritime infrastructure for investment.

A recent Memorandum of Understanding (MoU) signed with state-owned oil refiner Indian Oil Corporation Ltd, reveals the intent of the quasi-sovereign fund towards investment in ship ownership, particularly following Sitharaman’s announcement that large ships will be granted infrastructure status that allows local fleet owners to access long-term, low-cost funds and help compete with global ship owners.

These are early days but given the size of the funding required to scale up India’s shipping tonnage and shipbuilding for strategic reasons, new entrants in ship finance and ownership are crucial to complement the government’s efforts.

Indian banks have traditionally shied away from funding ship purchases given the highly volatile nature of the industry. This scenario is set to change with ships getting infrastructure status. A robust financing ecosystem is one of the reasons why China is where it is today in shipping and shipbuilding - ruling the world.

In this detailed report, ET Infra explains the background that led to the MoU and what it means to India’s shipping and shipbuilding industry.
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Here’s what else made headlines last week:

Dredging scam allegations at JN Port: Bombay HC stays CBI probe
ET Infra has published a series of articles on the alleged dredging scam at state-owned Jawaharlal Nehru Port near Mumbai, which calls out the attempts by the CBI to fabricate “fraud” and “criminality” where none exists. The action is now in the Bombay High Court where Tata Consulting Engineers have filed a petition seeking to quash the FIR filed by CBI, naming a former senior official of J N Port Authority and a serving senior official at Tata Consulting Engineers for their role in the alleged fraud.

Catch the full update

Autonomous rail freight trial at Deendayal Port
In a pioneering move, DP World and Nevomo Group will pilot India’s first autonomous rail freight movement at Deendayal Port. This significant development is expected to improve both operational efficiency and sustainability.

Know more

Mulapeta Port development plans in Andhra Pradesh
The Centre has expressed interest in developing the Mulapeta port in Andhra Pradesh as a mega port. This project aims to bolster India’s maritime infrastructure and enhance its global competitiveness.

Read the update

Vadhavan Port: A key step towards maritime superpower status
Maharashtra CM Fadnavis has highlighted the transformative potential of the Vadhavan Port, positioning it as a critical element in India’s goal to become a maritime superpower.

Explore the story

Stay tuned for more! We’ll be back next week with exclusive insights, expert views, and the latest updates from the world of infrastructure. Until then, keep building!

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