Aiming to revive India’s domestic shipbuilding and maritime capabilities, the Union Cabinet on Wednesday approved a ₹69,725 crore infrastructure package for the sector. The initiative is also designed to promote sustainable growth and generate employment across the maritime ecosystem. Another key goal is to cut dependence on imported ships and strengthen India’s maritime sector.
The ₹69,725 crore package includes several key initiatives to strengthen India’s shipbuilding and maritime sector.
“The initiative will boost national security, strengthen supply chains, and enhance India’s strategic self-reliance, advancing Aatmanirbhar Bharat and global competitiveness in shipping and shipbuilding,” the Cabinet said.
The Shipbuilding Financial Assistance Scheme (SBFAS), with ₹24,736 crore, will support domestic shipbuilders until 2036, providing up to 25% financial aid for green, hybrid, and specialized vessels, while introducing a Shipbreaking Credit Note to encourage recycling of older ships.
The Maritime Development Fund (MDF), worth ₹25,000 crore, will offer long-term financing for maritime projects through a ₹20,000 crore Maritime Investment Fund and a ₹5,000 crore Interest Incentivization Fund to lower borrowing costs.
Additionally, the Shipbuilding Cluster Development Scheme, with ₹19,989 crore, aims to develop new and existing shipyards, enhance technical capabilities, and promote skill development. The National Shipbuilding Mission will oversee these initiatives, ensuring coordinated and cohesive growth across the sector.
The government expects the reforms to generate about 3 million direct and indirect jobs, attract investments of ₹4.5 lakh crore, increase shipbuilding capacity by 4.5 million Gross Tonnage, and enable the construction of over 2,500 vessels, including eco-friendly and specialized ships.
This ambitious plan is part of India’s long-term vision to become a global leader in shipbuilding by 2047, leveraging its extensive coastline and rich maritime heritage.
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