To provide a fillip to the blue economy, the Maritime Amrit Kaal Vision 2047 was launched in October 2023. The long-term blueprint for the Indian maritime sector outlines strategic initiatives aimed at enhancing port facilities, promoting sustainable practices and facilitating international collaboration.
With the help of 13 working groups, deliberations were made to prepare the road map and implementation plan by analysing the regulatory provisions and reviewing various vision documents of leading international maritime nations. Based on this, the Amrit Kaal Vision 2047 describes more than 300 initiatives and actionable points for the ports, shipping and waterways sector. These action points have been defined across 11 key themes. The aim is to enhance the overall performance and efficiency of the Indian maritime sector and unlock the potential of the blue economy in India.
Indian Infrastructure takes a look at the themes of the Amrit Kaal Vision 2047 and highlights the key initiatives planned, along with their action plans…
Lead the world in developing a safe, sustainable and green maritime sector
In line with the International Marine Organisation’s (IMD) reduction strategy and the development of zero and low-emission solutions, the Indian government aims to reduce emissions from the maritime sector. This is important, as port authorities and operators face numerous challenges with respect to the increased pollution during construction and operational phases. At the same time, safety remains a major concern as ports are prone to natural disasters and accidents. As part of this theme, 22 initiatives have been identified, of which the key ones include developing a strategy to make all major ports carbon neutral and promoting the phased adoption of alternate fuels such as liquefied natural gas (LNG), hydrogen/ammonia and biofuels for port vehicles. The adoption of cleaner fuels will reduce emissions; however, the capex cost of developing such vessels is 20-30 per cent higher than to traditional fuel vessels.
Port authorities are expected to explore the public-private partnership (PPP) model for the conversion of trucks and for the development and operations and maintenance of LNG fuel stations at ports. Other initiatives for promoting sustainability in shipping include setting up a decarbonisation cell at the Directorate General of Shipping, launching more than 20 pilot projects under India’s green maritime shipping programme, providing incentives to foster the development of low-carbon vessels and retrofits in existing vessels, and extending the production-linked incentive scheme to support green maritime technology development in the country.
Promote the ocean, coastal and river cruise sector
Though a niche sector, cruise tourism in India has witnessed steady growth in the past few years and presents a strong opportunity. Apart from infrastructure-related challenges, the sector is highly dependent on foreign tourists.
There are 25 initiatives identified under this theme, of which the key ones include infrastructure initiatives such as developing cruise terminals and marinas along the east and west coasts of the country and developing inland waterways for river cruises. In addition, policy initiatives have been proposed, which include relaxing cabotage rules, extending the e-visa facility to five ports and providing fiscal incentives in terms of customs duty exemption on consumables. The Inland Waterways Authority of India is also planning to develop National Waterway 97, 8, 73 and 100 for cruises. The authority will provide demand-based support by conducting hydrographic surveys, managing the supply and installation of floating and concrete jetties, as well as steel walkways and marking buoys, subject to demand/proposals received from the state government/tourism department.
Enhance the modal share of coastal shipping and IWT
Coastal and inland waterway transportation is energy efficient and eco-friendly and reduces logistics costs for domestic freight. However, both sectors are still in the nascent stage compared to other countries and other modes of transport. The can be attributed to the high end-to-end multimodal coastal shipping costs due to origin/destination centres being located further inland from the coast, long lead distance from existing ports, and inefficiency in first/last-mile movement due to the setup of storage infrastructure. Key challenges faced by the inland waterways sector include the lack of sufficient least available draught for the commercial movement of cargo, limited capacity at terminals and poor last-mile connectivity.
In light of this, 46 initiatives have been identified, of which the key ones include the creation of port-based agglomeration centres, creation of coastal berths near coast-based production/demand centres, road/rail/inland water transport (IWT) connectivity/expansion projects, reduction in port dues and terminal charges, fiscal incentives such as allowing input tax credit on bunker fuel and spares purchased from various states, reduction of GST for multimodal transportation, and operationalisation of 50 waterways.
Promote the maritime cluster
Envisioned to be a spatial economic region, the maritime industrial cluster comprises a group of coastal districts or districts with a strong port linkage. Key challenges while developing the maritime industrial cluster include land acquisition issues, different structures/types of operating models, environmental impacts/restrictions and no incentive mechanisms in place for port-led industrialisation.
Thirty initiatives have been identified under this theme, of which the key ones include the identification of models in collaboration with the private sector for developing industrial clusters, identification of focus commodities for industrial clusters and the adoption of investor-friendly policies. These policies involve creating industrial clusters along ports such as the Deendayal Port Authority, V. O. Chidambaranar Port Authority, Syama Prasad Mookerjee Port Authority (Haldia) and the Andaman & Nicobar Islands. Further, developing steel agglomeration centres at or near the Paradip and Haldia ports will allow steel players located in the steel clusters to utilise the coastal shipping mode.
Promote maritime professional services
With the sector expanding at a fast pace, it requires proper mechanisms for mediation, conciliation and arbitration of disputes and expeditious settlement of insurance claims. The lack of an exclusive body for maritime dispute resolution in India remains a major concern.
Under this theme, 28 initiatives have been identified. These include the establishment of an international-level maritime arbitration centre, expeditious insurance claims settlement and provision of fiscal incentives in terms of direct and indirect taxes in the maritime sector. In addition, a maritime development fund has been proposed to provide low-cost and long-term capital in the sector. Moreover, a conciliation policy and setting up a conciliation body will ensure the reduction of existing disputes pending before arbitration tribunals or courts, thereby reducing unnecessary litigation.
Become a global player in shipbuilding, repair and recycling
Shipbuilding is a strategic multiplier industry and drives growth in various manufacturing sectors, generating employment opportunities on account of strong linkages with multiple industrial sectors. Currently, the Indian shipbuilding industry accounts for less than 1 per cent of the global share. Some of the key challenges faced by Indian shipyards are increasing cost of operations, high dependence on ancillary industries, high cost of raw materials and required capital unavailability.
A total of 17 initiatives have been identified for shipbuilding, ship repair and ship recycling. These include extending the policy for shipbuilding by five to 10 years beyond financial year 2025-26, promoting Atmanirbhar Bharat provisions and grading shipyards based on technical capacities. Key initiatives for ship recycling include expanding the Alang Shipyard, leveraging the vehicle scrapping policy and developing new ship recycling locations in Andhra Pradesh, Odisha and West Bengal to cater to the markets in Southeast Asia.
Develop world-class education, research and training
The maritime education and research ecosystem in the country currently operates on a standalone basis. The industry faces challenges in implementing policies for start-ups, setting up innovation labs and centres of excellence, etc. Under this theme, 39 initiatives have been identified, of which the key ones focus on creating an innovation ecosystem to promote world-class education, and promoting research and training in the maritime sector. This involves the setting up of incubators and accelerators in the country for promoting start-ups in the maritime sector, the establishment of maritime knowledge clusters to promote collaboration for research, and the standardisation of a port tariff structure across all ports.
Strengthen India’s global maritime presence
For India to become a significant maritime player, it is imperative that it forges partnerships and enhances maritime cooperation. At present, India ranks 21st in the number of submissions at the International Maritime Organisation (IMO). Its submissions are at least three times lower than the other leading voices at the IMO.
Forty-three initiatives have been identified under this theme, of which the ones initiatives focus on strengthening India’s global maritime presence with a dedicated IMO cell in India, appointing a permanent representative at the IMO headquarters (London) and implementing the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Master Plan.
Develop world-class next-generation ports
Given the dynamic nature of the shipping industry, vessel dimensions and cargo compositions, it is imperative that Indian ports enhance their port infrastructure and secure a larger portion of the world’s export-import market. India has a significant potential to set up mega ports and compete with global ports. However, there are challenges that need to be addressed, such as low draft, limited capacity expansion and inadequate hinterland connectivity.
To this end, 42 initiatives have been identified. These include a focus on developing world-class next-generation ports, which include developing port clusters involving major and non-major ports with capacities over 300 million tonnes per annum (mtpa), creating deeper drafts (18-23 metres) at ports establishing transshipment hubs, developing two new major ports, and increasing private sector participation through the implementation of projects under the PM Gati Shakti – National Master Plan and the Asset Monetisation Plan.
Enhance efficiency through technology and innovation
One of the primary forces driving innovation in the port and maritime industries over the past 10-15 years has been the digital revolution. The ports need to facilitate digitalisation and the integration of end-to-end processes and stakeholders throughout the supply logistics value chain to enable data-driven investment strategies and decision-making. Some of the key challenges include delays in exchanging messages with from the customs department, non-standardisation of formats, difficulty in terminal operation integration and issues with the monitoring of dredging volume by each dredger.
A total of 17 initiatives have been identified under this theme, of which the key ones include technology initiatives such as improving operational efficiency through E-Gate 2.0 at all ports based on computer vision and optical character recognition technologies, drone-based inventory management and automation of mobile harbour cranes. Further, port planning and optimisation initiatives include digital twins for ports and systems, advanced analytics-based yard management and automated allotment of berths. India should also implement both the National Logistics Policy and Unified Logistics Interface Platform at all minor/private/IWT ports by 2047.
Enhance India’s tonnage
The rate of increase in Indian-flag shipping tonnage has not kept pace with the demands of the Indian trade. Key challenges include limited sources of vessel financing in the country, delays in naval clearance of Indian-flag offshore supply vessels, and customs-related issues faced by Indian shipping companies.
Nine initiatives have been identified under this theme, of which the ones initiatives include revisiting the applicability of tax deducted at source on wages paid to Indian seafarers; allowing input tax credit on the fuel, spares, etc., procured for vessels and granting infrastructure status to the shipping industry. Once implemented, India is expected to rank among the top five countries for tonnage under Indian-flagged vessels. As of 2021, the country is positioned at 22nd.
In sum
With the ultimate goal of making India a major player in the marine industry, the Amrit Kaal Vision 2047 manifesto is an expression of the country’s desire to empower the shipping industry, revitalise waterways and enhance its ports.
According to the vision document, investments worth Rs 75-Rs 80 trillion will be utilised for various goals such as achieving carbon neutrality at all major ports, attaining the highest rank in cruise tourism, more than doubling the number of operational waterways, and becoming the leading nation in ship recycling. With this long-term development roadmap, Indian ports are expected to attain sustainable growth and enhanced connectivity, making them competitive with global ports worldwide.
