The Union Cabinet has approved a Rs 697.25 billion package aimed at strengthening India’s shipbuilding industry, reducing dependence on foreign ships, and boosting domestic maritime capacity.

The package follows a four-pillar approach to enhance domestic shipbuilding capacity, provide long-term financing, support greenfield and brownfield shipyard development, promote technical skills and training, and implement legal, taxation, and policy reforms for robust maritime infrastructure.

Under the initiative, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until March 31, 2036, with a corpus of Rs 247.36 billion. This includes a Shipbreaking Credit Note of Rs 40.01 billion and the establishment of a National Shipbuilding Mission to oversee implementation.

The Maritime Development Fund (MDF) has been approved with a corpus of Rs 250 billion, including a Maritime Investment Fund of Rs 200 billion with 49 per cent government participation and a Rs 50 billion Interest Incentivisation Fund to lower debt costs and improve project bankability.

Additionally, the Shipbuilding Development Scheme (SbDS), with an outlay of Rs 199.89 billion, aims to expand domestic shipbuilding capacity to 4.5 million gross tonnage annually, support mega shipbuilding clusters, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for projects.

The package is expected to generate nearly 30 lakh jobs, attract investments of about Rs 4.5 trillion, and strengthen national, energy, and food security by enhancing resilience in supply chains and maritime routes. It also aims to improve India’s global shipbuilding ranking, targeting a top-ten position by 2030 and top-five by 2047, advancing the vision of Aatmanirbhar Bharat.

News source: The Hindu