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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

High-stakes chess beneath the surface

BJP Candidates coming out after filing their nomination for the upcoming Legislative Council Polls from Vidhan Bhavan in Mumbai on Thursday. Pic: Bhushan Koyande Mumbai: Typically, when a ruling coalition enjoys a formidable and comfortable majority, elections to the Rajya Sabha and the State Legislative Council are quiet, predictable affairs. They are often viewed as mere formalities, rarely capturing the public imagination or dominating front-page headlines. Historically, these indirect...

High-stakes chess beneath the surface

BJP Candidates coming out after filing their nomination for the upcoming Legislative Council Polls from Vidhan Bhavan in Mumbai on Thursday. Pic: Bhushan Koyande Mumbai: Typically, when a ruling coalition enjoys a formidable and comfortable majority, elections to the Rajya Sabha and the State Legislative Council are quiet, predictable affairs. They are often viewed as mere formalities, rarely capturing the public imagination or dominating front-page headlines. Historically, these indirect elections only become newsworthy under specific conditions: either the ruling coalition is plagued by internal fissures, or the opposition is too fragmented to put up a united front. In Maharashtra, however, the political landscape remains highly volatile. Recently, the Rajya Sabha elections became the center of intense media scrutiny, and over the past week, the Legislative Council polls followed suit. Although all ten candidates—nine from the ruling alliance and one from the opposition Maha Vikas Aghadi (MVA)—are now set to be elected unopposed, the intricate backroom maneuvers that led to this truce kept the state’s political circles buzzing. Interestingly, the reason for this heightened news value can be traced to both a subtle tug-of-war within the ruling combine and a visibly weakened opposition. Shifting Strategy The maneuvering within the opposition ranks has been particularly telling. A major focal point of the election buildup was the anticipated candidacy of Shiv Sena (UBT) Chief Uddhav Thackeray. After generating considerable hype and speculation about a potential return to the legislature, Thackeray ultimately chose to withdraw from the electoral fray. This sudden pullback forced a rapid recalibration within the MVA. Initially, the Congress party had adopted an aggressive posture, declaring its intention to field a candidate if Thackeray decided against contesting. However, following closed-door deliberations with Shiv Sena (UBT) leadership, the Congress quietly backed down. Why the state Congress leadership so readily acquiesced to this sudden change in strategy, sacrificing a potential seat, remains a mystery and a subject of intense debate among political observers. On the other side of the aisle, the ruling Mahayuti coalition maximized this electoral opportunity to consolidate its political base, reward loyalists, and balance complex regional equations. The Nationalist Congress Party (NCP) strategically paved the way for the political rehabilitation of former Congress legislator Zishan Siddique by nominating him to the Legislative Council. This calculated move introduces a prominent new Muslim face for the party, likely intended to fill the leadership vacuum in Mumbai left by veteran leader Nawab Malik. Meanwhile, Chief Minister Eknath Shinde used his nominations to send a definitive message about the premium he places on loyalty. By securing another term for Dr. Neelam Gorhe, Shinde demonstrated that those who stood by his faction would be adequately rewarded. Furthermore, by bringing Vidarbha strongman Bachchu Kadu into the fold, Shinde has attempted to anchor his party’s future and expand its footprint in a region predominantly controlled by his senior alliance partner, the BJP. The Bharatiya Janata Party, playing its characteristic long game, meticulously ensured that its list of six candidates struck the perfect organizational, social, and political balance. Battle for LOP Despite these broader alliance strategies, the most consequential nomination in this electoral cycle is arguably that of Ambadas Danve. Barely six months after completing his tenure in the Upper House and stepping down from the prestigious post of Leader of the Opposition in the Legislative Council, Danve has been nominated once again by the Shiv Sena (UBT). With his return to the house, there is a strong possibility that he will reclaim his former post. This specific development highlights a much deeper crisis within the Congress. Following Danve’s brief retirement, the Congress had naturally emerged as the largest opposition party in the Upper House. This mathematical advantage theoretically paved the way for their Kolhapur strongman, Satej “Banti” Patil, to lay claim to the Leader of the Opposition’s chair. However, the sudden defection of Congress MLC Pradnya Satav, who switched loyalties to the BJP, severely dented the party’s numbers. Her departure brought the Congress’s strength in the house just below that of the Shiv Sena (UBT). Stripped of its numerical superiority overnight, the Congress was relegated to being a mute spectator, unable to assert its rightful claim. Internal Dissent This series of tactical defeats has triggered palpable frustration within the Congress’s state unit. One senior Congress leader, speaking on the condition of anonymity, expressed deep disappointment with the state leadership’s inability to protect the party’s interests. “Everyone has personal political ambitions, but leaders must learn the ways to collectively move ahead and strategize,” the leader remarked, attributing the party’s current stagnation in Maharashtra to this lack of cohesive vision. In short, these Legislative Council elections have delivered one message loud and clear: even when everything appears calm and stable on the surface, the relentless machinery of politics continues to churn behind the scenes. No political player in Maharashtra can afford to rest assured or sit idle under the illusion that there are no major state elections until 2029.

Indian Shipbuilding A Must Win Marathon

Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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