Visakhapatnam, Oct 6 (PTI) Union Shipping Minister Sarbananda Sonowal on Monday said that 112 vessels will be built in joint ventures with oil public sector units, thereby saving USD 350 billion in forex.

Addressing a meeting at Visakhapatnam Port Authority (VPA), Sonowal said this initiative of building vessels will contribute to the country's efforts to save USD 75 billion in foreign exchange paid annually towards freight charges to foreign shipping lines.

"Oil PSU joint ventures to build 112 vessels, save USD 350 billion forex by 2047," he said, adding that the Shipping Corporation of India (SCI) is working with the oil PSUs to aggregate demand for the 112 vessels.

Highlighting that a series of transformative policy measures were undertaken by the government to build a robust maritime ecosystem, Sonowal said a Rs 69,725 crore comprehensive package for the maritime and shipbuilding sectors will accelerate shipbuilding, modernisation, and competitiveness.

The government has also extended the Shipbuilding Financial Assistance Scheme (SBFAS) till 2036 with a corpus of Rs 24,736 crore, ensuring sustained support for Indian shipyards, he said.

Further, he said a Maritime Development Fund (MDF) worth Rs 25,000 crore--comprising a Rs 20,000 crore investment fund and a Rs 5,000 crore interest incentivisation fund--has been established to enable long-term financing and strengthen the industry's global competitiveness.

Likewise, the Shipbuilding Development Scheme (SbDS) with an outlay of Rs 19,989 crore aims to expand India's domestic shipbuilding capacity to 4.5 million gross tonnage annually, boosting employment and skill development, said the Shipping Minister.

These measures, coupled with infrastructure status for large vessels, customs duty exemptions for shipbuilding components, along with reforms such as the extension of tonnage tax regime to inland vessels, are laying the foundation for a globally competitive maritime ecosystem, said Sonowal, who inaugurated a string of projects at VPA.

He also accorded a ceremonial welcome to India's first Very Large Gas Carrier (VLGC) 'Shivalik' at Visakhapatnam Port.

The vessel, inducted under the Indian flag by SCI on September 10, marks a significant milestone in the nation's maritime and energy logistics.

"Welcome to India's first Very Large Gas Carrier (VLGC) Shivalik' at Visakhapatnam Port. The induction of Shivalik' under the Indian flag is a proud milestone, reflecting India's maritime growth and aligning with Atmanirbhar Bharat and Maritime India Vision 2030," said Sonowal, who also handles the portfolios of Ports and Waterways.

He congratulated the SCI team and lauded VPA for facilitating smooth operations during the vessel's inaugural LPG consignment handling.

The arrival of Shivalik aligns with the Indian government's Atmanirbhar Bharat (self-reliant) vision and the Maritime India Vision 2030, promoting self-reliance and indigenous growth in the shipping sector.

Sonowal interacted with the crew of Shivalik appreciating their contribution to India's maritime excellence, and commended VPA's efforts to modernise infrastructure and strengthen energy logistics.

The event underscored the government's commitment to developing Visakhapatnam as a leading energy logistics hub on the eastern coast. PTI STH KH

Shipbuilding joint ventures to expand domestic fleet capacity, reducing reliance on foreign shipping and strengthening maritime self-reliance. A national programme to build vessels through joint ventures with oil public sector undertakings centralises demand aggregation via the national shipping corporation to expand domestic fleet capacity and reduce reliance on foreign shipping. Supporting measures include extension of the Shipbuilding Financial Assistance Scheme, creation of a Maritime Development Fund, launch of the Shipbuilding Development Scheme, granting infrastructure status to large vessels, customs duty exemptions for shipbuilding components, and extension of the tonnage tax regime to inland vessels to strengthen long-term financing and competitiveness.