The criteria finalized by the Finance Ministry have given rise to concerns between coastal ship owners and Shipyard.Mumbai: On September 19, 2025, the Finance Ministry is pressurizing the Ministry of Finance to amend the notified eligibility criteria, to provide ships with local shipbuilders to provide infrastructure conditions, demanding the intervention of economists and economists of the Prime Minister’s Economic Advisory Council to amend the policy.
Shipbuilders are claiming that the exclusion of small coastal vessels from the tag of the infrastructure will prevent development and India’s ambition to become a large ship -making hub.
Sanyal is said to have played an impressive role to give the government the status of infrastructure to ships, a long -standing demand of fleet owners that were ignored by the Finance Ministry, in view of its “flotting” nature and therefore did not suit the physical property which is usually eligible for this type of tag.
Read here: Sanjeev Sanyal gave the status of infrastructure to Indian -made, Indian flag ships and shipS
According to the notification issued by the Ministry of Finance on September 19, 2025, Indian -owned commercial ships will be given a gross tonne load (GT) of 10,000 and above, or Indian manufactured, ownership and flagged commercial ships will be given infrastructure status.
The criteria finalized by the Finance Ministry have given rise to concerns between coastal ship owners and Shipyard.
There are about 1,500 ships registered under the Merchant Shipping Act in India, out of which about 1,000 ships are named as exclusive “coastal” ships. Of this, over 500 “small coastal ships” such as tugs, dredners and offshore ships, will fail to qualify for “infrastructure benefit” under the current plan.
The association of Indian coastal ship owners fired a salvo against the notification for the first time that it was said that the excluding “Defoy Logic”, excluding the scope of the infrastructure situation “Defoy Logic”, ET infra Informed on 22 September 2025.
Read here: The criteria of the Ministry of Finance for Infra Status leaves a large part of the coastal ships
Local shipbuilders have now joined the chorus to slam the notification.
Shipyards Association of India (SAI), a lobby group for local shipbuilders, Shipyards Association of India (SAI) for Shipyards Association of India (SAI) aims to promote Indian shipping industry by providing long and low -cost funds for the Association of India (SAI), “
The criteria prepared by the Finance Ministry “unanimously” distracted, which arrived by Sai and the Indian National Ship Owner Association, which proposed “24 meters in length or 24 meters in length or 24 meters in length or 24 meters in length” or 500 GT to give infrastructure tags. It was supported by the ports, Ministry of Shipping and Waterways and the Directorate General of Shipping.
“It is surprising and disappointing that the Finance Ministry has completely ignored and disregarded the recommendation of the Nodal Ministry … The boycott of small ships from the infrastructure tag will probably be an obstacle in the development of MSME Shipyards, which are important to achieve the make in India’s target,” Sansaiw Walia, the Chief Executive Officer of Sansi, has written by Sai.
However, the government stated that the eligibility criteria “covers the maximum section of business and also gives preference to the construction of ships in India”.
“The idea of giving infrastructure situation is to support large capes,” said the joint secretary of the ports, shipping and waterways. ET infra At an industry program in Mumbai on 25 September 2025.
“Notification of the Ministry of Finance mainly focuses on a large part of Indian shipping needs and infrastructure conditions, provides access to better financing. It improves access (for money), it increases the tenure of financing, and it probably reduces the cost of financing. India, it is also some above 1,500 GT.
“This idea is to encourage the manufacture of coastal shipping ships in India as they are quite possible to be built in India and if a vessel is built outside India, it keeps a roof of about 10,000 GT and that is a big piece to re -work for infra position. In India.
The local shipbuilding industry, however, is not confident.
Underlining the impact of the Finance Ministry notification on the coastal shipping sector, the Shipyards Association of India said that the eligibility criteria clearly deprive coastal shipping of funding options and receive orders from the owners of the coastal ship. The ship will create a harmful status for the manufacturing industry, which is being fully supported by ports, shipping and waterways to make India self -sufficient and promote the economy by Prime Minister Narendra Modi and ports, shipping and waterways.
Sai said, “The eligibility criteria, maritime shipping and shipbuilding refuting the government’s initiative, as maritime India is written in Vision 2030 and Marine Amrit Amrit Kaal Vision 2047 and goes against the feeling of make in India’s policy,” Sai.
According to SAI, lack of support for local shipbuilding may increase dependence on foreign ships, damage to India’s economy and strategic interests.
Sai said, “At the end of its useful life of about 25–30 years, the replacement of coastal vessels as well as the additional requirements of new ships, which are expected to promote shipbuilding, the auxiliary industry and the MSME Shipyard will give a huge blow,” Sai said.
Already 24-26 percent expensive than China, South Korea and Japan with shipbuilding in India, Indian shipyards will struggle to compete globally due to lack of adequate support.
The notification, if not amended, will probably ensure that the targets set for coastal shipping under the Marine Amrit Kaal Vision have not been achieved.
Sai said, “The requirements of ships will have to be met by purchasing 15 to 20 years old ships built in China and other countries, and the Indian shipbuilding industry will never be envisaged.”
“It is extremely essential and indispensable that small yards are inspired by policy initiative, while large yards thrive by taking advantage of their infrastructure. The hour needs to strengthen and difference the ecosystem. The product,” the product, “Integri Marine and Director Bhupesh Tater in the Mumbai -based Integri Marine and Offendor Services.
