India’s ambitions in shipbuilding have received a major boost as France’s CMA CGM has signed a Letter of Intent (LoI) to build six LNG-powered container ships at Cochin Shipyard, in a deal valued at approximately $300 million. This marks a significant moment for India’s maritime and industrial capabilities, reprts the Economic Times.
Tide Turns for India with $300 Million CMA CGM Order
Each vessel in the order will have a capacity of 1,700 TEUs (twenty-foot equivalent units) and run on liquefied natural gas, aligning with CMA CGM’s broader strategy toward decarbonization in shipping. Notably, this is the first time a global major liner operator has placed a container shipbuilding order with an Indian shipyard.
Cochin Shipyard, which already has landmark projects to its name—including India’s first home-built aircraft carrier, major dredgers, and naval vessels—now faces its moment of truth on the global stage. The shipyard’s recent partnership with South Korea’s HD Korea Shipbuilding & Offshore Engineering Co. (KSOE) played a key role in bolstering confidence in its capacity to deliver to international standards.
The timing of the order is no coincidence. India recently approved a ₹69,725 crore shipbuilding incentive package, and the upgraded Shipbuilding Financial Assistance (SBFA) 2.0 policy offers Cochin Shipyard 20–25% additional government support depending on whether the vessel qualifies as a “green ship” or “advanced & specialized vessel.” The policy’s clarity and implementation were essential for concluding the deal.
Part of CMA CGM’s impetus stems from its earlier decision to reflag four of its container vessels under the Indian flag—fulfilling a commitment made by its chairman to India’s Prime Minister. It is possible the six new ships may also be flagged in India, enhancing the country’s standing in global shipping.
India’s current global share in container shipbuilding is under 1%, placing it 16th worldwide. But with landmark orders like this, the country is now charting a path toward cracking the top 10 by 2030 and aiming for a top 5 rank by 2047—India’s centenary year of independence.
Beyond the prestige, the CMA CGM order is expected to catalyze development of an indigenous supplier ecosystem, attract further orders from global owners, and enhance India’s negotiating strength vis-à-vis vendors. As one industry executive noted, the confidence a marquee name like CMA CGM brings can open doors—previously unavailable to Indian yards in the container ship segment. The scale and credibility built through such orders are precisely what the domestic shipbuilding industry has long sought.
In sum, the deal represents more than just six vessels—it signals the potential reorientation of India’s shipbuilding ambitions, bridging domestic potential with global demand, and turning a new page in maritime manufacturing.
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Source: ET
