In response to a Rajya Sabha question on August 6, 2024, Shri Sarbananda Sonowal detailed that the government is implementing several key initiatives to strengthen the capacity and competitiveness of Indian shipping lines. This strategy is designed to reduce our dependency on foreign shipping firms and tackle the challenge of escalating freight costs. By improving the efficiency and reach of domestic shipping, the government aims to make Indian ports more competitive on a global scale and ultimately lower shipping costs, benefiting both businesses and consumers. The following steps have been taken by the government to develop Indian Shipping lines:-

<!--[if !supportLists]-->1.      <!--[endif]-->Right of First Refusal (ROFR) :- The government has introduced a new policy that gives Indian-flagged vessels the chance to match the lowest bid offered by foreign vessels, aiming to boost their use. They’ve also updated the rules for awarding contracts to prioritize Indian ships and encourage more shipbuilding in India, supporting the goal of making the country more Atma-nirbhar/ self-reliant in shipping and maritime industries. The following are the revised hierarchy of ROFR:-

i - Indian built, Indian flagged and Indian owned
 ii - Indian built, Indian flagged and Indian IFSCA ( International Financial Services Centre Authority) owned
iii - Foreign built, Indian flagged and Indian owned
iv - Foreign built, Indian flagged and Indian IFSCA owned
v - Indian built, Foreign flagged and Foreign owned

<!--[if !supportLists]-->1.    Subsidy support to Indian Shipping Companies :- The subsidy scheme that was launched in 2021,  has a budget of ₹1,624 Crore spread over five years and is aimed at boosting Indian shipping companies. It provides financial support to these companies when they participate in global tenders issued by government ministries and central public sector enterprises (CPSEs) for transporting essential government cargo, including crude oil, LPG (liquefied petroleum gas), coal, and fertilizers. The goal is to enhance the competitiveness of Indian-flagged ships and encourage greater participation in international shipping activities.

<!--[if !supportLists]-->2.      <!--[endif]-->Ship Building Financial Assistance Policy (2016-2026) :- On December 9, 2015, the Indian government rolled out a Financial Assistance Policy for Indian shipyards to boost the domestic shipbuilding industry. Under this policy, shipyards can receive financial support for vessels whose construction begins after signing a valid contract. To be eligible, vessels must be constructed and delivered within three years from the contract date, though this period can be extended to six years for specialized vessels. The financial assistance amounts to 20% of the contract price, but this support decreases by 3% every three years, reflecting a gradual reduction in subsidy as the industry becomes more self-sufficient. This initiative aims to encourage more shipbuilding activity in India and strengthen the domestic shipyard sector.