Anamika Mishra
[Sub Editor]
NEW DELHI: The Ministry of Shipping is finalizing schemes aimed at revitalizing the shipbuilding industry, including the establishment of a 25000 cr Maritine Development Fund. This fund will provide low-cost, long-term financing options to bolster the maritime sector. Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, stated that the ministry has conducted extensive studies and gathered input from various stakeholders to support shipbuilding initiatives. Key features of the proposed schemes include an updated Shipbuilding Financial Assistance Policy with incentives for green ships, shipbreaking credit notes, and the creation of an apex body to oversee the implementation of these reforms.
The Ministry of Shipping is finalizing schemes aimed at revitalizing the shipbuilding industry, including the establishment of a ₹25,000 crore Maritime Development Fund. This fund will provide low-cost, long-term financing options to bolster the maritime sector.
Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, stated that the ministry has conducted extensive studies and gathered input from various stakeholders to support shipbuilding initiatives. Key features of the proposed schemes include an updated Shipbuilding Financial Assistance Policy (SBFAP 2.0) with incentives for green ships, shipbreaking credit notes, and the creation of an apex body to oversee the implementation of these reforms.
India's shipping sector has seen positive growth, with a 22% increase in Indian-flagged vessels over the last decade, reaching a total of 1,526 ships by 2023-24. According to ministry data, shipbuilding in FY24 recorded a 19% year-on-year increase, resulting in 26,412 gross tonnage (GT) constructed.
The new Maritime Development Fund aims to address the decline in the share of overseas cargo carried by Indian-flagged vessels and reduce reliance on foreign fleets. Sonowal highlighted that the fund is expected to stimulate ship acquisition, create jobs, enhance economic security, and support forex and GDP growth.
The SBFAP 2.0 will offer special incentives for ships utilizing low-carbon fuels or green hydrogen. Additionally, reforms in the ship-breaking sector are under consideration, including issuing credit notes to shipowners for vessels scrapped in Indian yards, which can be used toward the construction of new vessels in India.
The ministry is also focusing on capacity building, with proposals for a national center to enhance shipbuilding skills through courses, apprenticeships, and internships. Incentives for research and development in the shipbuilding sector and support for the establishment of new facilities and ancillary industries are also being explored.
These initiatives aim to strengthen India's shipbuilding capabilities and position the country as a significant player in the global maritime industry.
Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.
Discover all our upcoming events and secure your tickets today.
Journal of Supply Chain is a Hansi Bakis Media brand.
Subscribe to our Daily Newsletter
Subscribe For FreeBy continuing you agree to our Privacy Policy & Terms & Conditions
Next News
Anamika Mishra
[Sub Editor]
In a significant move towards sustainability, a leading beverage brand has launched a comprehensive program aimed at upgrading its emissions calculation and reporting processes. The initiative, spearheaded by consultancy AllChiefs, is designed to deliver clear and actionable recommendations for reducing emissions and improving overall environmental impact.
The project unfolds in three distinct phases, each building on the last. In the first phase, AllChiefs collaborated with the multinational beverage company
to clarify its sustainability ambitions. A primary focus was on reducing the time and resources spent on manual reporting, transitioning to a more integrated and automated emissions reporting system.
"One of the main aims for the beverage company was to ensure compliance with emissions accounting standards," said Inge Tanke, partner at AllChiefs. "Navigating the complex landscape of international rules can be challenging, and having more detailed emissions data is essential for better insights into reduction efforts."
The second phase involved a thorough assessment based on AllChiefs' three main criteria: enhancing input data reliability, aligning calculation methods with international standards, and improving reporting governance. "We conducted interviews with key stakeholders to identify both strengths and challenges in the current process," noted Bonne Goedhart, another partner at AllChiefs.
Additionally, the project ensured alignment of IT initiatives with the new data approach, safeguarding against data loss and optimizing storage methods. Sample data calculation checks were performed to address critical methodological questions, including responsibilities for intercompany logistics and reporting on complex scenarios.
The final phase focused on categorizing and prioritizing identified gaps to enhance the client's data practices. This included a collaborative workshop with stakeholders to validate the gaps and assess them based on effort and impact. The outcomes were categorized into immediate compliance needs, quick fixes, tool implementations, and long-term improvements.
The prioritization process provided the client with various implementation options, each with its own set of pros and cons. Ultimately, the project equipped the beverage brand with a clearer overview of its current emissions reporting status, prompting the hiring of a new employee dedicated to advancing these improvement efforts.
"Improving the emissions reporting process is a continuous journey," Goedhart emphasized. "It requires ongoing commitment to maintain accuracy and relevance. We are proud to support our client’s journey toward a sustainable future, aligning perfectly with our values and decarbonization goals."
As climate change intensifies and regulatory frameworks tighten, companies face increasing pressure to adopt greener logistics practices. Beyond direct emissions (scope 1 and 2), there is a growing emphasis on addressing the challenging scope 3 emissions—those arising from entities that companies engage with but do not directly control.
“AllChiefs is committed to accelerating the transition to net-zero logistics and partnering with clients in this critical challenge,” Tanke and Goedhart stated.
Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.
Discover all our upcoming events and secure your tickets today.
Journal of Supply Chain is a Hansi Bakis Media brand.
The week’s best stories, handpicked by JOSC editors in your inbox every week.
Stay informed with exclusive content
