The Aryavarth Express
Agency (New Delhi): The Ministry of Ports, Shipping, and Waterways (MoPSW) recently hosted a crucial workshop in New Delhi, focusing on “Challenges and Prospective Solutions on Financing and Insurance in the Shipping Sector.” The event witnessed substantial participation from various stakeholders in the maritime community, including industry experts.
The workshop was structured into two sessions, each targeting pivotal areas in the shipping sector. The first session explored financing challenges, while the second session delved into issues related to insurance in the shipping industry. Attendees engaged in productive discussions, offering valuable insights and potential strategies to enhance the marine ecosystem. The conversations revolved around pivotal topics such as ship ownership, tonnage, and enhancing shipbuilding capacity in India.
Shri TK Ramachandran, Secretary of MoPSW, noted the richness of the discussions and the collaborative efforts of industry experts and stakeholders in paving the way for innovative solutions to address the challenges faced by the shipping industry.
This workshop is part of a series of discussions involving industry and other stakeholders, focusing on various issues in the Indian shipping sector. The morning session centered on financing solutions to promote Indian shipping tonnage and the shipbuilding industry. The afternoon session discussed developing insurance products for Hull & Machinery and Protection & Indemnity in India. The event was unique in its diverse stakeholder representation, including policymakers, regulators, banks, financial institutions, shipyards, ship owners, and representatives from the World Bank.
The workshop aimed to identify solutions to elevate the Indian shipbuilding sector from its current 22nd rank to the top 5 globally by 2047. Additionally, there was an emphasis on increasing Indian tonnage as outlined in the Maritime India Vision 2030 and MAKV 2047.
Key targets under the Maritime India Vision 2030 include promoting domestic shipbuilding, repair, and recycling. The workshop discussed leveraging domestic demand for shipbuilding and repair, utilizing Atmanirbhar PPP provisions, and RoFR rules effectively.
Financing discussions highlighted the need for long tenure funds, infrastructure status for shipping, policy and regulatory changes to enhance bank lending, and increasing the capacity of Indian banks and financial institutions to provide loans. The workshop also explored the benefits of IFSC rules and obtaining long-term cargo contracts to boost domestic tonnage and shipbuilding.
Insurance discussions focused on the potential establishment of an Indian P&I club to meet the specific needs of the Indian Shipping sector. Collaborative efforts were suggested to provide primary layer insurance to shippers and shipbuilders, with re-insurance handled by global players. The goal is to competitively cover Indian ships and cargos, gradually developing an Indian P&I club with competence across different shipping segments.
The workshop concluded with plans for a subsequent event focusing on promoting the shipbuilding and ship repair business in India.