CMA CGM team to visit India for shipbuilding talks

The world’s third largest container carrier is expected to sign a Memorandum of Understanding (MoU) with Cochin Shipyard on shipbuilding and repairs, a person with knowledge of the matter said. The France-based company may also strike a partnership with Swan Defence and Heavy Industries, the person added.

The visit comes after Rodolphe Saadé, Chairman and CEO of CMA CGM, told visiting Indian Prime Minister Narendra Modi, at its headquarters on February 12, that he will send a study team to India to look at shipbuilding and repair opportunities as well as shifting some of the internationally flagged ships of the company to the Indian flag. Modi informed Saade about the policies, including financial incentives, that his government is providing to grow India’s shipbuilding industry. The visit by a team from CMA CGM will round off an action-packed week for the Indian shipbuilding industry, with top officials from two of the world’s top three container carriers flying to the country to assess the preparedness of local shipbuilders to take up huge orders. In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman, announced a Rs 25,000-crore Maritime Development Fund (MDF), a revamped shipbuilding financial assistance policy to address cost disadvantages faced by local shipbuilders, a credit note for shipbreaking in Indian yards to promote circular economy and infrastructure status to large ships above a specified size. Under the proposed ship recycling credit note scheme, a credit note equivalent to 40% of the scrap value of a ship being dismantled in an Indian ship breaking yard would be given to a fleet owner – both Indian and global — with the credit note being reimbursable against the cost of construction of a new vessel at an Indian yard. With this credit note, the fleet owner can go to an Indian shipbuilder for ordering a new ship and get a rebate in the shipbuilding cost to the extent of the credit note value.

Shipbuilding clusters will be facilitated to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem, the Finance Minister said.

Further, exemption from Basic Customs Duty (BCD) on raw materials, components, consumables or parts used in the manufacture of ships as well as import of ships for shipbreaking will be extended for a further ten years beginning 1 April, 2025.