2024-07-09 23:31:12
New Delhi: Gautam Adani, the second richest man in India and Asia, is now planning to enter shipbuilding. Shipbuilding work may start at the flagship port of the Adani Group in Mundra, Gujarat. The reason for this is that most of the yards in China, Japan and South Korea are fully booked at least till 2028. This is the reason why large ship operating companies in the world are looking for alternative places for shipbuilding. India is also included in these. To take advantage of this opportunity, the Adani Group is seriously considering entering shipbuilding. The Adani Group is the largest port operator in the country. The Maritime India Vision 2030 aims to make India a top 10 shipbuilder and the Maritime Amrit Kal Vision aims to be among the top five by 2047. The Adani Group’s plan fits into this plan of the country. India’s share in the world’s commercial shipbuilding market is just 0.05%. India ranks 20th in the list of countries building commercial ships in the world. Indian-owned and Indian-flagged ships account for about 5% of the country’s total overseas cargo requirements. Adani’s shipbuilding plan has been included in the Rs 45,000 crore expansion plan for Mundra port. This plan has recently received approval from the Ministry of Environment.
$62 billion market
Adani Group is preparing to enter shipbuilding at a time when the global shipping industry is gradually moving towards green ships to meet decarbonization targets. According to an estimate, more than 50,000 ships are to be built in the next 30 years to replace the existing fleet. Adani Group did not respond to an email sent in this regard. According to a KPMG report, India’s commercial shipbuilding market is estimated to reach $62 billion by 2047. Along with this, the ancillary industry related to it can reach $37 billion. This is expected to provide employment to 12 million people.
According to KPMG, to reach the Maritime India Vision 2030 and Amrit Kal Vision targets, the annual production of Indian shipyards needs to increase from 0.072 million gross tonnes to 0.33 million gross tonnes by 2030 and to 11.31 million gross tonnes by 2047. To achieve a minimum 5% of Indian overseas cargo carriage by 2047, in addition to increasing domestic cargo capacity, additional fleet capacity is required. As a result, domestic shipbuilding demand is estimated to be 59.74 million gross tonnes over the next 23 years. This also includes replacement of old ships.
Investment of Rs 7,51,29,79,50,000 and employment to 10,000 people… What is Gautam Adani’s plan?
what is the advantage
Experts say that it may take a long time for a new company to enter this sector, but the conditions are easy for the Adani Group. It has land and environmental clearance for this. This will be the first step of the Adani Group in heavy engineering. Getting the SEZ status will help the Adani Group to deal with many financial and tax challenges. Due to these challenges, local companies are unable to compete with Chinese shipbuilding companies. There are eight government yards and about 20 private yards in India. Larsen & Toubro operates a yard in Kattupalli near Chennai.