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Correspondent

21 August 2024 at 3:50:16 pm

Arid State

Maharashtra has finally put an official number on a crisis that farmers have been experiencing for weeks. The state government has declared 265 of its 358 talukas drought-affected, activating the first stage of its drought-management framework. The scale of the distress should make this more than another seasonal relief exercise. It is a reminder that water stress is no longer an episodic crisis but a recurring governance challenge. The state received 798.2 mm of rain against a normal 970.9...

Arid State

Maharashtra has finally put an official number on a crisis that farmers have been experiencing for weeks. The state government has declared 265 of its 358 talukas drought-affected, activating the first stage of its drought-management framework. The scale of the distress should make this more than another seasonal relief exercise. It is a reminder that water stress is no longer an episodic crisis but a recurring governance challenge. The state received 798.2 mm of rain against a normal 970.9 mm between June 1 and September 26, a deficit of 18 percent. The first drought trigger is activated when rainfall falls more than 25 percent below normal and is accompanied by a prolonged dry spell of 21 days. Though the aggregate state deficit is lower than that threshold, the taluka-level assessment has established the conditions required for intervention. Except for five districts, rainfall has been deficient across the state. The government has ordered a stay on the recovery of agriculture-related loans and restructuring of crop loans, while extending concessions on electricity bills for agricultural pumps. Employment Guarantee Scheme norms are to be relaxed; food grains provided to farmers and arrangements made for drinking water and fodder. Crop-loss surveys will determine the eventual financial assistance. While these measures can cushion the shock, they cannot solve the problem. Maharashtra has lived with drought long enough for drought relief to have become an administrative routine. The more difficult question is why the state repeatedly finds itself having to mobilise the same machinery. Tankers, fodder camps, loan restructuring and employment guarantees are indispensable when the rains fail. But they are essentially the politics and economics of response, not resilience. The state has considerable experience in watershed development, farm ponds, check dams, groundwater recharge and other forms of water conservation. Yet the effectiveness of such interventions depends less on announcing them than on where they are built, whether they are maintained and whether groundwater extraction is regulated. Large-scale water-conservation works announced as part of the present relief package must therefore be judged by measurable outcomes rather than expenditure. There is a larger agricultural question. A state with highly variable rainfall cannot indefinitely expand water-intensive cropping patterns in regions whose hydrology cannot support them. Crop choices, irrigation efficiency and groundwater management have to become part of drought policy rather than being treated as separate subjects. The present declaration should consequently be viewed as both relief and warning. While the relief is urgent, the warning is structural. The state government cannot control the monsoon but it can decide how much water it captures when the rains arrive, how efficiently it uses what it stores and how resilient its farmers are when the skies fail. A drought code can declare an emergency. But only sustained water management can prevent the emergency from becoming routine.

Indian Shipbuilding A Must Win Marathon

Writer: Capt. Naveen S Singhal
Capt. Naveen S Singhal
Dec 5, 2024
4 min read
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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