Maritime clusters
are to be one of focal points for economic development along India’s
coastline, says a draft report prepared under Sagarmala Programme of the
Ministry of Shipping.
The report on
port-led-industrial development of the coastal economic clusters identifies
two major maritime clusters in Tamil Nadu & Gujarat similar
to the global success stories in Japan and South Korea.
Globally
the shipbuilding market is dominated by China, Korea and Japan which
cumulatively account for 90 per cent of the world’s shipbuilding capacity. In
spite of the downturn with excess capacities; this demand is expected to go up
to 150 mn DWT by 2025 and 300 mn DWT by 2035 with the growth in global exports.
According
to the report, India currently accounts for only 0.45 per cent of the global
shipbuilding market and could target 3–4 mn DWT of the global shipbuilding
capacity by 2025. With the recent policies & initiatives by the Government
of India, the unfavorable cost differential faced by the Indian shipyards is
expected to reduce. Subsequently, opportunity in defence sector, growth in
coastal shipping and replacement of existing vessel fleet is expected to drive
growth of the shipbuilding industry in India.
The
report also states that India can target to achieve a 0.2 per cent share of maritime services
in overall GDP by 2025. Given an expected GDP of USD 6 trillion in India by
2025, and a services share of 50 per cent, the maritime services industry
is expected to be worth around USD 6 billion by 2025. Even the INR 5,000 Crore
worth ancillaries market for maritime cluster can prove to be a huge
opportunity for the Indian economy with engineering, fabrication and machining
offering the greatest potential by 2025.
With
the given potential, Gujarat and Tamil Nadu can emerge as major maritime clusters for
India with scope of developing various components of
the maritime cluster like ship building & ancillary
services, maritime services, promoting maritime tourism and
marine products.
In
Gujarat, the potential marine cluster could leverage the existing
ecosystem and steel supplies from Hazira. It can also utilize existing
shipyards at Pipavav, Dahej & Hazira ports and ship breaking yard at Alang.
The cluster will consist of existing shipyards,
ancillary cluster at Bhavnagar with retail and leisure components,
services cluster in Ahmedabad / Gujarat International Finance
Tec-City (GIFT) and existing fish landing centres as identified by the
Gujarat Maritime Board (GMB).
The maritime cluster in
Tamil Nadu is proposed to be developed near Chennai due to enabling conditions
like existing shipyards, major ports, steel cluster, automotive and
engineering industry, universities and colleges. A 100-acre land parcel owned
by Kamrajar Port Limited has been identified for cluster development
in Tamil Nadu. This site is also in proximity to Kattupalli Port and shipyard.
Given
the manufacturing strength, size of the ports with high traffic and synergies
with other steel ancillaries, both the identified locations for maritime clusters can
provide positive synergistic effect by attracting business for
the maritime industry and improving the economics for the cluster participants.
Placing
India as an ideal destination for developing marine tourism, the report also
suggests developing aquariums, water parks, marine museums, cruise tourism and
water sports. The fishing industry would provide employment and
contribute to the overall maritime economy of the State, says the
report.
The
report also captures overall opportunity of port-led industrial development for
the country through 14 CEZs proposed along the maritime states and
industrial clusters under Sagarmala. The competitive location of
these CEZs will help reduce logistics costs, thus, enabling Indian trade to be
more competitive globally. These proposed CEZs with proximity to ports have
been envisioned to tap synergies from the industrial corridors to provide a
thrust to manufacturing and industrialization under the ‘Make in India’
initiative of the Government of India.
Given
the vast scope of Sagarmala, the Ministry of Shipping being the nodal Ministry
is driving this port-led- development initiative. It is also reaching out to
relevant stakeholders through workshops and meetings with the project
development consultants for alignment on proposed ideas to finalize on various
plans under the programme.
The report has been
released on the Ministry of Shipping website.
Link: http://shipping.nic.in/showfile.php?lid=2334
***
UM/NP