Date: 22/02/2024

Maritime development fund for shipping on the anvil

The government is considering setting up a maritime development fund (MDF) with a view to provide low-cost, long-term financial support to the shipping sector, said Mr T. K. Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways, while speaking at an event organised by industry body CII. The government is also looking at granting infrastructure status to the shipping sector, he added. 
There are two options for creating a MDF - setting up a dedicated maritime vertical under the newly proposed development finance institution, or constituting a standalone MDF as a company with majority ownership by a multilateral, bilateral agency. 
Besides, the government is considering notifying guidelines for setting up NBFCs at the International Financial Services Centre (IFSC) to undertake vessel financing/leasing. It is also looking at removing restrictions on investment in ship leasing by insurance companies, as per a report.
Source: Exim News Service: New Delhi, Feb. 21