Cabinet Approves Rs. 69,725 Crore Package for India’s Maritime Growth

The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has approved a comprehensive Rs. 69,725 crore package aimed at revitalizing India’s shipbuilding and maritime sector. The initiative introduces a four-pillar approach focused on strengthening domestic capacity, improving financing, expanding shipyard infrastructure, enhancing technical skills, and implementing key policy reforms. The package is expected to boost India’s maritime capabilities, generate jobs, enhance national security, and position India as a global player in shipbuilding.

Key Highlights:

• Cabinet Approval: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved a Rs. 69,725 crore comprehensive package aimed at revitalizing India’s shipbuilding and maritime sector.

• Four-Pillar Approach: The package focuses on strengthening domestic capacity, improving long-term financing, promoting greenfield and brownfield shipyard development, enhancing technical capabilities and skilling, and implementing legal, taxation, and policy reforms.

Key Components of the Package:

1. Shipbuilding Financial Assistance Scheme (SBFAS):

   • Extended until March 31, 2036.

   • Total corpus: Rs. 24,736 crore.

   • Includes a Shipbreaking Credit Note allocation of Rs. 4,001 crore.

   • Establishment of a National Shipbuilding Mission to oversee initiatives.

2. Maritime Development Fund (MDF):

   • Approved with a corpus of Rs. 25,000 crore.

   • Maritime Investment Fund: Rs. 20,000 crore (49% government participation).

   • Interest Incentivization Fund: Rs. 5,000 crore to reduce debt costs and improve project bankability.

3. Shipbuilding Development Scheme (SbDS):

   • Budget: Rs. 19,989 crore.

   • Aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually.

   • Supports mega shipbuilding clusters, infrastructure expansion, and risk coverage, including insurance support for shipbuilding projects.

Economic and Strategic Impact:

• Expected to unlock 4.5 million Gross Tonnage of shipbuilding capacity.

• Generate nearly 30 lakh jobs.

• Attract investments of approximately Rs. 4.5 lakh crore.

• Strengthen national, energy, and food security by reinforcing critical supply chains and maritime routes.

• Promote India’s geopolitical resilience and self-reliance in maritime capabilities, supporting the vision of Aatmanirbhar Bharat.

Conclusion

India’s maritime sector is poised for significant growth, positioning the country as a competitive force in global shipping and shipbuilding. With an ambitious plan to revitalize shipbuilding and maritime financing, India is moving towards achieving its strategic and economic goals while bolstering national security.