MARITIME DEVELOPMENT FUND OF Rs 25,000 CRORE PROPOSED

MODIFIED UDAN SCHEME TO CONNECT 120 NEW DESTINATIONS AND CARRY 4 CRORE PASSENGERS IN NEXT 10 YEARS

GREENFIELD AIRPORTS AND WESTERN KOSHI CANAL PROJECT FOR BIHAR

For long-term financing for the maritime industry, the Union Finance Minister Smt. Nirmala Sitharaman has proposed to set up a Maritime Development Fund with a corpus of Rs 25,000 crore. Announcing this in her budget speech in the Parliament today, the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman said that this corpus will be for distributed support and promoting competition in the maritime industry. The fund will have up to 49 per cent contribution by the Government, and the balance will be mobilized from ports and private sector.

The Finance Minister stated that the Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages, which will also include Credit Notes for shipbreaking in Indian yards to promote the circular economy. Further, the large ships above a specified size are also proposed to be included in the infrastructure harmonized master list (HML). The Union Budget also proposes to facilitate ‘Shipbuilding Clusters’ in order to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem. Acknowledging that the shipbuilding has a long gestation period, the Finance Minister proposed to continue the exemption of Basic Customs Duty on raw materials, components, consumables or parts for the manufacture of ships for another ten years. She further proposed the same dispensation for ship breaking to make it more competitive.

Praising the Regional Connectivity Scheme UDAN, Smt. Nirmala Sitharaman said in her speech that UDAN has enabled 1.5 crore middle-class people to meet their aspirations for speedier travel. The scheme has connected 88 airports and operationalized 619 routes. Inspired by that success, a modified UDAN scheme which will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years and this scheme will also support helipads and smaller airports in hilly, aspirational, and North East region districts, stated the Finance Minister. She also informed the house that the government will facilitate upgradation of infrastructure and warehousing for air cargo including high value perishable horticulture produce. Cargo screening and customs protocols will also be streamlined and made user-friendly.

Giving infrastructure fillip to the state of Bihar, the Union Finance Minster proposed that the Greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta. Financial support will also be provided for the Western Koshi Canal ERM Project benefitting a large number of farmers cultivating over 50,000 hectares of land in the Mithilanchal region of Bihar.

Maritime development fund proposed to mobilize government and private contributions for long-term shipbuilding and shipbreaking support. Proposal to establish a Maritime Development Fund with government contribution and private/port mobilization to finance the maritime industry, revamp the Shipbuilding Financial Assistance Policy including credit notes for shipbreaking, include larger ships in the infrastructure harmonized master list, facilitate shipbuilding clusters, and continue Basic Customs Duty exemptions for ship inputs and shipbreaking. Concurrently, a modified UDAN scheme will expand regional connectivity including helipads and smaller airports, improve air cargo infrastructure and customs protocols, and support Greenfield and brownfield airport projects and an irrigation canal project in Bihar.