New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a comprehensive Rs 69,725 crore package aimed at revitalizing India’s shipbuilding and maritime ecosystem.
The initiative introduces a four-pronged strategy to strengthen domestic shipbuilding capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical skills, and implement legal, taxation, and policy reforms to build a robust maritime infrastructure.
As part of the plan, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until March 31, 2036, with a total corpus of Rs 24,736 crore. The scheme, designed to incentivize domestic shipbuilding, also includes a Shipbreaking Credit Note with an allocation of Rs 4,001 crore.
A National Shipbuilding Mission will oversee the implementation of all initiatives. The Cabinet also approved a Maritime Development Fund (MDF) with a corpus of Rs 25,000 crore to provide long-term financing for the sector. This includes a Rs 20,000 crore Maritime Investment Fund, with 49 per cent participation from the Government of India, and a Rs 5,000 crore Interest Incentivization Fund to lower debt costs and improve project viability.
The Shipbuilding Development Scheme (SbDS), with a budget of Rs 19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually, support mega shipbuilding clusters, enhance infrastructure, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage including insurance support for shipbuilding projects.
The package is expected to unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments of around Rs 4.5 lakh crore into India’s maritime sector. Beyond its economic benefits, the initiative will strengthen national, energy, and food security by making supply chains and maritime routes more resilient.
Experts also note that the programme will bolster India’s geopolitical resilience and strategic self-reliance, advancing the vision of Aatmanirbhar Bharat and positioning the country as a competitive global player in shipping and shipbuilding. India’s maritime legacy spans centuries of trade and seafaring, and today, the sector continues to support nearly 95 per cent of the nation’s trade by volume and 70 per cent by value.
