"But currently this is one of the most neglected industries in the country as a whole," he adds.
"Banks and financial institutions are apprehensive about lending money to ``floating assets``. They are asking for huge collaterals for getting a loan," said Xavier of Century Shipyard. The withdrawal of subsidy in 2007 was a major blow to Indian shipbuilders, including majors such as the Cochin Shipyard Ltd (CSL). "Shipbuilding grew in countries like China only with government support,```` says Commodore K Subramaniam, chairman and MD. The new orders that rose sharply from 0.01 million DWT in 2002 to about 3.19 million DWT in 2007 took a sharp drop after the withdrawal of subsidy. For example, CSL has not received a single order for a private vessel from India after 2007.
The shortage of designers, who are well versed in designing vessels as per the revised classification, is another constraint facing the industry in Kochi. "We have to often depend on designers from Mumbai and Chennai to get the design that would be approved by classification agencies," said Hari of Master Shipyard.
But the small shipbuilding industry``s prospects will depend on how coastal shipping picks up.
Currently, only a minuscule of the cargo is transported through water despite the huge potential that exists.
The country has a long stretch of coastline and inland waterways. But realizing the potential of water transport will largely depend on government framing proactive polices and implementing them with consistent rigour.