INDIA: Cabinet Approves ₹69,725 Crore Package to Revitalise India’s Shipbuilding and Maritime Sector
Cabinet Approves ₹69,725 Crore Package to Revitalise India’s Shipbuilding and Maritime Sector
Comprehensive 4-Pillar Approach to Strengthen Shipbuilding, Maritime Financing, and Domestic Capacity
Shipbuilding Financial Assistance Scheme (SBFAS) extended until 31 March, 2036 with a total corpus of ₹24,736 crore including ₹4,001crore allocation for Ship-breaking Credit Note (SCN)
Maritime Development Fund (MDF) approved with Maritime Investment Fund of ₹20,000 crore & an Interest Incentivisation Fund of ₹5,000 crore
Shipbuilding Development Scheme (SbDS), with an outlay of ₹19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage
DD TIMES
Delhi, September 24: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi approved a comprehensive package of ₹69,725 crore to revitalise India’s shipbuilding and maritime ecosystem here today. The package introduces a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation, and policy reforms to create a robust maritime infrastructure.
Under this package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until 31 March 2036 with a total corpus of ₹24,736 crore. The scheme aims to incentivise ship building in India and includes a Ship-breaking Credit Note with an allocation of ₹4,001 crore. A National Shipbuilding Mission will also be established to oversee the implementation of all initiatives.
In addition, the Maritime Development Fund (MDF) has been approved with a corpus of ₹25,000 crore to provide long-term financing for the sector.
This includes a Maritime Investment Fund of ₹20,000 crore with 49% participation from the Government of India and an Interest Incentivisation Fund of ₹5,000 crore to reduce the effective cost of debt and improve project bankability.
Furthermore, the Shipbuilding Development Scheme (SbDS), with a budgetary outlay of ₹19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually, support mega shipbuilding clusters, infrastructure expansion, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for shipbuilding projects.
The overall package is expected to unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments of approximately ₹4.5 lakh crore into India’s maritime sector. Beyond its economic impact, the initiative will strengthen national, energy, and food security by bringing resilience to critical supply chains and maritime routes. It will also reinforce India’s geopolitical resilience and strategic self-reliance, advancing the vision of Aatmanirbhar Bharat and positioning India as a competitive force in global shipping and shipbuilding.
Speaking on the occasion, the Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal said, “Historic package approved by the Narendra Modi ji led Cabinet lays formidable foundation for the resurgence of a golden era in Bharat’s Maritime Sector. Largest ever government outlay in Independent India’s history for the Maritime Sector set to position India among the league of top 5 maritime nations by Amrit Kaal.”
India has a long and illustrious maritime history, with centuries of trade and seafaring that connected the subcontinent to the world. Today, the maritime sector remains a backbone of the Indian economy, supporting nearly 95% of the nation’s trade by volume and 70% by value. At its core lies shipbuilding, often described as the “mother of heavy engineering,” which not only contributes significantly to employment and investment but also enhances national security, strategic independence, and the resilience of trade and energy supply chains.
