India Plans Rs 70 Billion Push for Shipbuilding and Ports
PORTS & SHIPPING

India Plans Rs 70 Billion Push for Shipbuilding and Ports

The Indian government is preparing a Rs 70 billion stimulus for the shipping sector, with the Union Cabinet expected to review three major schemes shortly, according to media reports. The initiative reflects India’s efforts to expand shipbuilding, port infrastructure, and maritime trade capacity in the coming years.
Shares of leading shipbuilders such as Shipping Corporation of India (SCI), Garden Reach Shipbuilders & Engineers (GRSE), and Mazagon Dock Shipbuilders have already risen on expectations of government support.
The plan centres on three key initiatives: a Rs 20 billion Shipbuilding Fund, a Rs 25 billion Maritime Development Fund (MDF), and a Rs 25 billion financial assistance package for shipbuilding. The MDF is expected to receive 49 per cent equity from the government, with the remainder sourced from port authorities, public sector units, financial institutions, and private investors.
These schemes will provide interest subsidies, long-term financing, and incentives to strengthen domestic shipbuilding, ship-breaking, and port-linked infrastructure. India is also promoting new greenfield clusters and expanding existing maritime hubs. In a notable development, Cochin Shipyard Limited (CSL) signed a strategic partnership on September 23 with HD Korea Shipbuilding & Offshore Engineering to advance shipbuilding capabilities. CSL is additionally exploring a Rs 15 billion shipyard project in Tamil Nadu, projected to generate around 10,000 jobs.
Minister of State for Ports and Shipping, Shantanu Thakur, recently outlined India’s goal of securing a 5 per cent share of the global shipbuilding market by 2030. “Our target is to achieve a stronger presence globally through investments in automation, digital twin technology, and green shipbuilding solutions,” he said at a CII conference on September 15. The government also plans to establish ten world-class shipyards by 2030 through public-private partnerships and international collaborations.
Reports indicate an additional Rs 4 billion incentive package may soon be introduced to support the shipbreaking industry. This follows the finance ministry granting infrastructure status to large ships on September 19, which facilitates easier financing and investment in the sector.
These initiatives form part of India’s long-term strategy to develop a globally competitive shipping and shipbuilding ecosystem, boosting trade growth and employment across the maritime sector.

The Indian government is preparing a Rs 70 billion stimulus for the shipping sector, with the Union Cabinet expected to review three major schemes shortly, according to media reports. The initiative reflects India’s efforts to expand shipbuilding, port infrastructure, and maritime trade capacity in the coming years.Shares of leading shipbuilders such as Shipping Corporation of India (SCI), Garden Reach Shipbuilders & Engineers (GRSE), and Mazagon Dock Shipbuilders have already risen on expectations of government support.The plan centres on three key initiatives: a Rs 20 billion Shipbuilding Fund, a Rs 25 billion Maritime Development Fund (MDF), and a Rs 25 billion financial assistance package for shipbuilding. The MDF is expected to receive 49 per cent equity from the government, with the remainder sourced from port authorities, public sector units, financial institutions, and private investors.These schemes will provide interest subsidies, long-term financing, and incentives to strengthen domestic shipbuilding, ship-breaking, and port-linked infrastructure. India is also promoting new greenfield clusters and expanding existing maritime hubs. In a notable development, Cochin Shipyard Limited (CSL) signed a strategic partnership on September 23 with HD Korea Shipbuilding & Offshore Engineering to advance shipbuilding capabilities. CSL is additionally exploring a Rs 15 billion shipyard project in Tamil Nadu, projected to generate around 10,000 jobs.Minister of State for Ports and Shipping, Shantanu Thakur, recently outlined India’s goal of securing a 5 per cent share of the global shipbuilding market by 2030. “Our target is to achieve a stronger presence globally through investments in automation, digital twin technology, and green shipbuilding solutions,” he said at a CII conference on September 15. The government also plans to establish ten world-class shipyards by 2030 through public-private partnerships and international collaborations.Reports indicate an additional Rs 4 billion incentive package may soon be introduced to support the shipbreaking industry. This follows the finance ministry granting infrastructure status to large ships on September 19, which facilitates easier financing and investment in the sector.These initiatives form part of India’s long-term strategy to develop a globally competitive shipping and shipbuilding ecosystem, boosting trade growth and employment across the maritime sector. 

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