FinMin may soon notify infra status for ships: CNBC Awaaz Sources

The government is preparing to grant infrastructure status to ships, with the Finance Ministry expected to issue a notification soon, sources told CNBC Awaaz.

According to those aware of the deliberations, the eligibility criteria being discussed requires vessels to have a minimum length of 24 metres.

Currently, shipyards enjoy infrastructure status, enabling them to avail long-term loans at lower interest rates, flexible project financing structures, and the ability to issue infrastructure bonds.

Extending the same benefits to shipping companies would allow them access to easier financing, long-term repayment schedules, and reduced borrowing costs from commercial banks.

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Shipping is capital-intensive, and this change could support domestic vessel acquisitions, particularly from Indian shipyards, thereby boosting indigenous shipbuilding and raising Indian ownership of large vessels.

The move is expected to not only strengthen the shipping sector but also improve India’s global standing in maritime infrastructure and shipbuilding.

While shipyards have benefited from the infrastructure designation for years, shipping companies have so far been left out, depriving them of similar access to long-term, low-cost funding.

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Granting this status, sources suggest, will help bridge that gap and provide a further fillip to the government’s efforts at strengthening India’s maritime ecosystem.