he four-pillar package extends support for shipbuilding, financing, and domestic capacity while boosting India’s strategic and economic resilience.
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a comprehensive package of Rs.69,725 crore to strengthen India’s shipbuilding and maritime sector. The decision, announced today, is aimed at revitalizing the ecosystem with a four-pillar approach focusing on domestic capacity, long-term financing, shipyard development, skilling, and policy reforms.
As part of the package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until March 31, 2036, with a total corpus of Rs.24,736 crore. This includes a Shipbreaking Credit Note worth Rs.4,001 crore to support sustainable ship recycling. A National Shipbuilding Mission will also be launched to coordinate and monitor the various initiatives.
The Cabinet also approved the Maritime Development Fund (MDF) with a total corpus of Rs.25,000 crore. This includes a Maritime Investment Fund of Rs.20,000 crore with 49% government participation, and an Interest Incentivization Fund of Rs.5,000 crore to reduce financing costs and improve project bankability.
Another major step is the Shipbuilding Development Scheme (SbDS) with an outlay of Rs.19,989 crore. This scheme will help expand India’s domestic shipbuilding capacity to 4.5 million Gross Tonnage annually. It will also support mega shipbuilding clusters, infrastructure expansion, and the establishment of the India Ship Technology Centre under the Indian Maritime University, while offering risk coverage and insurance support for shipbuilding projects.
The overall package is expected to unlock 4.5 million Gross Tonnage of new shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments worth Rs.4.5 lakh crore. Apart from boosting economic growth, the initiative will also enhance India’s energy and food security, improve resilience in supply chains, and reinforce India’s position in global shipping and shipbuilding.
India’s maritime sector handles nearly 95% of the country’s trade by volume and 70% by value. With this decision, the government has reaffirmed its commitment to strengthening the sector under the vision of Aatmanirbhar Bharat, making India a competitive global hub for shipbuilding.
Source: PMO
