Tamil Nadu unveiled Shipbuilding Policy 2026, prioritising green shipbuilding and circular economy practices. The policy aims to establish the state as a leader in sustainable maritime technology and to promote zero-emission vessels and green recycling facilities. The measure provides incentives for vessels powered by green hydrogen, ammonia and electric propulsion.

It aligns with India's Maritime Amrit Kaal Vision 2047 to lower carbon emissions across the shipping fleet. The policy promotes Green Ship Recycling clusters and offers a 15 per cent capital subsidy to the first five recycling yards that obtain international environmental certifications. The yards will supply low-carbon ferrous scrap under Waste to Wealth principles.

A Sunrise Sector status is created for marine component manufacturers to encourage eco-friendly technologies and a domestic supply chain. Investments of at least Rs 500 million (mn) in this category will qualify for a structured package of incentives. The state will work with the Indian Maritime University to introduce a specialised Green Shipping Technology curriculum.

The policy proposes a single-window clearance system and financial assistance to attract global demand for green shipbuilding. A five-year roadmap seeks to correct the market share gap where India accounts for zero point zero six per cent of global shipbuilding. The document aims to integrate regulation, finance and skills to boost competitiveness.

The state intends to leverage its 1,068 km coastline and natural deep-water access to facilitate construction of high-value vessels, including Very Large Crude Carriers exceeding 200,000 Dead Weight Tons. Favourable bathymetry is cited as reducing the need for dredging and the tropical climate in southern districts is expected to enable year-round shipbuilding and repair operations.

A Structured Package of Assistance is proposed for shipyards committing a minimum investment of Rs 10 billion (bn) and the creation of at least 1,000 jobs. Investors are offered four financial models including state equity participation up to 49 per cent, asset leasing up to Rs 60 billion (bn) and tiered capital subsidies of 10 to 25 per cent. The state will form NSHIPTN and a Shipbuilding Skill Council to support infrastructure and research.