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India Boosts Shipbuilding With Rs 25,000 Billion Maritime Fund
PORTS & SHIPPING

India Boosts Shipbuilding With Rs 25,000 Billion Maritime Fund

The Government of India has announced a series of initiatives to upgrade and modernise the country’s shipbuilding sector, with a strong focus on green technology, financial support, and infrastructure expansion.
Key measures include amendments to the Shipbuilding Financial Assistance Policy (SBFAP), release of five standard tug designs for major ports, and revisions to the Right of First Refusal (RoFR) framework to strengthen indigenous shipbuilding. The Green Tug Transition Programme (GTTP) and Harit Nauka guidelines for inland vessels have also been launched to promote sustainable operations.
To enhance financial support, the 2025 Union Budget announced the creation of a Maritime Development Fund with a corpus of Rs 25,000 billion to provide long-term financing for the industry. Additional measures include the inclusion of large ships in the Harmonised Master List of Infrastructure Sub-sectors, continued exemption of customs duty on shipbuilding raw materials, and plans to establish shipbuilding clusters with skilling and technology support.
Public sector giant Cochin Shipyard Limited (CSL) has led recent infrastructure upgrades. Its Rs 179.9 billion dry dock at Kochi, inaugurated in January 2024, is one of the largest in India, capable of handling advanced vessels including LNG carriers, drill ships, and aircraft carriers. Additionally, a Rs 97 billion International Ship Repair Facility (ISRF) at Willingdon Island has significantly boosted repair capacity with a 6,000-tonne ship lift, six dry berths, and modern outfitting infrastructure.
CSL has also signed agreements with international shipbuilders such as Fincantieri, IHC Holland, Robert Allan, Seatrium Le Tourneau, and HD Korea Shipbuilding & Offshore Engineering to collaborate on design, equipment manufacturing, and skill development.
To encourage green propulsion, the Government amended the SBFAP in 2023 to include 30 per cent assistance for vessels powered by methanol, ammonia, or hydrogen fuel cells, and 20 per cent for fully electric or hybrid vessels.
The Ministry of Ports, Shipping and Waterways confirmed these initiatives as part of India’s commitment to build a competitive, sustainable, and globally integrated shipbuilding ecosystem.

The Government of India has announced a series of initiatives to upgrade and modernise the country’s shipbuilding sector, with a strong focus on green technology, financial support, and infrastructure expansion.Key measures include amendments to the Shipbuilding Financial Assistance Policy (SBFAP), release of five standard tug designs for major ports, and revisions to the Right of First Refusal (RoFR) framework to strengthen indigenous shipbuilding. The Green Tug Transition Programme (GTTP) and Harit Nauka guidelines for inland vessels have also been launched to promote sustainable operations.To enhance financial support, the 2025 Union Budget announced the creation of a Maritime Development Fund with a corpus of Rs 25,000 billion to provide long-term financing for the industry. Additional measures include the inclusion of large ships in the Harmonised Master List of Infrastructure Sub-sectors, continued exemption of customs duty on shipbuilding raw materials, and plans to establish shipbuilding clusters with skilling and technology support.Public sector giant Cochin Shipyard Limited (CSL) has led recent infrastructure upgrades. Its Rs 179.9 billion dry dock at Kochi, inaugurated in January 2024, is one of the largest in India, capable of handling advanced vessels including LNG carriers, drill ships, and aircraft carriers. Additionally, a Rs 97 billion International Ship Repair Facility (ISRF) at Willingdon Island has significantly boosted repair capacity with a 6,000-tonne ship lift, six dry berths, and modern outfitting infrastructure.CSL has also signed agreements with international shipbuilders such as Fincantieri, IHC Holland, Robert Allan, Seatrium Le Tourneau, and HD Korea Shipbuilding & Offshore Engineering to collaborate on design, equipment manufacturing, and skill development.To encourage green propulsion, the Government amended the SBFAP in 2023 to include 30 per cent assistance for vessels powered by methanol, ammonia, or hydrogen fuel cells, and 20 per cent for fully electric or hybrid vessels.The Ministry of Ports, Shipping and Waterways confirmed these initiatives as part of India’s commitment to build a competitive, sustainable, and globally integrated shipbuilding ecosystem.

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