India Partners with Norway/Japan for Shipbuilding and Polar Research Vessel
India has finalized a new round of international partnerships aimed at strengthening its shipbuilding sector and the launch of its first domestic polar research vessel. It is part of the declared strategy of Indian Prime Minister Narendra Modi to make India a powerhouse in international shipbuilding.
During an official visit to Norway this week time to coincide with the Nor-Shipping Conference, India’s Minister of Ports, Shipping and Waterways Sarbananda Sonowal held talks with Japan’s Minister of Infrastructure and Transport Terada Yoshimichi. On the agenda of the meeting was deepening maritime ties between India and Japan. The two ministers reviewed the progress of a possible partnership deal between Indian and Japanese shipyards.
Sonowal expressed India’s interest in leading Japanese shipbuilding companies such as the Imabari Shipbuilding, JMUC, Kanagawa Dockyard, and Mitsubishi Heavy Industries to explore joint ventures and collaborative arrangements with Indian yards.
He also attended the signing of a Memorandum of Understanding (MoU) between the Kolkata-based Garden Reach Shipbuilders and Engineers Limited (GRSE) and Norway’s Kongsberg Maritime. This partnership is critical as GRSE embarks on the design and construction of India’s first-ever polar research vessel. Kongsberg, a maritime technology specialist company, will provide design expertise for developing the research vessel.
“Japan’s expertise in shipbuilding and ship repair is well recognized, and I see a great scope for collaboration in this area. We also invite Japan’s Big Three maritime companies, NYK Line, Mitsui O.S.K. Lines, and K Line, to explore joint ventures and investment opportunities in India’s growing maritime sector,” stated Sarbananda Sonowal.
Japan has been engaged in railway infrastructure development with India but now is interested in the maritime sector. Mutual collaboration in shipbuilding and training of seafarers is welcome, commented Yoshimichi.
Imabari Shipbuilding is already looking into a greenfield investment in India’s Andhra Pradesh state. In February, Imabari’s President Yukito Higaki led a high-level delegation to meet Andhra Pradesh Chief Minister N. Chandrababu Naidu, where the two parties discussed potential investments in shipbuilding.
Last year, Andhra Pradesh finalized a maritime policy, which is offering incentives for the creation of yard infrastructure. The state has adopted a cluster-based approach, zoning off land in specific port areas for allocation to shipbuilding and ship-repairing companies. The land may be provided for a long-term lease (30-60 years) at a nominal rate.
In a roundtable with the Norwegian Shipowners’ Association (NSA), Sonowal called for the owners to consider investing in India’s maritime sector. The minister recognized that Indian shipyards currently hold 11 percent of NSA’s order book. “We request for further expansion of orders, including leveraging on India’s ship breaking credit note scheme.”
India has already made strong inroads into the Norwegian shipping community building for example the autonomous barges for ASKO Maritime, a division of a Norwegian grocery chain. In April, India’s Udupi Cochin Shipyard delivered the first dry bulk vessel, Wilson Eco 1, to the Norwegian Wilson Ship Management. The vessel is the first in a series of six 3,800 DWT cargo ships, which Wilson ordered at the yard in June 2023.
India has also been courting the South Korean shipbuilding industry encouraging partnerships and development of yards in India. Major shipping companies including CMA CGM, Maersk, and MSC Mediterranean Shipping Company have also been courted with proposals for ship repair and shipbuilding at India’s yards.