Chennai, Mar 4 (PTI) In a definitive push toward environmental stewardship in the maritime sector, the Tamil Nadu government has placed green shipbuilding and circular economy practices at the forefront of its newly unveiled Shipbuilding Policy 2026.
The policy aims to establish the state as a global leader in sustainable maritime technology, focusing on zero-emission vessels and world-class green recycling facilities.
Released by Tamil Nadu Chief Minister M K Stalin on Wednesday, the policy provides specialised incentives for the construction of “green vessels,” including those powered by green hydrogen, ammonia, and electric propulsion.
These initiatives are designed to align with India’s Maritime Amrit Kaal Vision 2047, which targets a significant reduction in carbon emissions across the shipping fleet.
A key highlight of the policy is the promotion of Green Ship Recycling clusters. To discourage hazardous dismantling practices, the state has announced a 15 per cent capital subsidy for the first five recycling yards that obtain international environmental certifications, such as the Hong Kong International Convention and the EU Ship Recycling Regulation.
These yards are expected to serve as critical hubs for “Waste to Wealth,” supplying low-carbon ferrous scrap to the state’s industrial manufacturing sector.
The policy also introduces a “Sunrise Sector” status for marine component manufacturers focusing on eco-friendly technologies.
Investments of at least Rs 50 crore in this category will be eligible for a structured package of incentives, encouraging the development of a domestic supply chain for sustainable maritime hardware.
The state plans to collaborate with the Indian Maritime University to introduce a specialised curriculum in “Green Shipping Technology,” ensuring a workforce capable of handling Industry 4.0 standards and alternative fuel systems.
By integrating these green mandates with a single-window clearance system and robust financial assistance, Tamil Nadu seeks to capture a significant share of the global green shipbuilding market, which is witnessing surging demand due to tightening international maritime emission norms.
The policy document outlines an ambitious roadmap for the next five years, aiming to address the current disparity where India holds just 0.06 per cent of the global shipbuilding market despite its heavy reliance on sea-borne trade.
The state government intends to leverage its 1,068 km coastline and natural deep-water access to facilitate the construction of high-value vessels, including Very Large Crude Carriers exceeding 200,000 Dead Weight Tons.
The policy notes that the state’s favourable bathymetry significantly reduces the need for expensive dredging, making it ideal for large-scale maritime projects.
Adding to this advantage are the tropical climate and predictable weather patterns in the southern districts, which are expected to enable year-round, uninterrupted shipbuilding and repair operations, providing a competitive edge over India’s western coast.
To attract substantial private investment, the policy introduces a Structured Package of Assistance for shipyards committing a minimum investment of Rs 1,000 crore and the creation of at least 1,000 jobs.
Investors are offered four financial models, including an equity participation option where the state may become a minority stakeholder with up to 49 per cent holding.
Other options include asset leasing of critical shipyard infrastructure up to Rs 6,000 crore, tiered capital subsidies ranging from 10 to 25 per cent of eligible fixed assets, and a production-linked incentive for mega-projects exceeding Rs 12,000 crore in investment.
The state also plans to establish a dedicated special-purpose vehicle, NSHIPTN, under the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) to streamline land and seaside infrastructure development.
To ensure a steady pipeline of skilled manpower, a Shipbuilding Skill Council will be formed in collaboration with the Indian Maritime University to develop curricula focused on Industry 4.0, robotics, and digital design.
The policy also includes a payroll subsidy for high-paying design jobs to encourage the establishment of ship design firms and research centres within the state. PTI JR SSK
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