Cabinet approves Rs.69,725 crore Package to Revitalize India’s Shipbuilding and Maritime Sector

Recognizing the strategic and economic importance of the maritime sector, the Union Cabinet has approved a comprehensive package of Rs.69,725 crore aimed at revitalizing India’s shipbuilding and maritime ecosystem. The initiative follows a four-pillar approach to strengthen domestic capacity, improve long-term financing, and promote both greenfield and brownfield shipyard development.

Key Components of the Package

1. Shipbuilding Financial Assistance Scheme (SBFAS):
   • Extended until 31 March 2036
   • Total corpus: Rs.24,736 crore
   • Aims to support domestic shipbuilders through direct financial assistance
2. Maritime Development Fund (MDF):
   • Approved with a corpus of Rs.25,000 crore
   • Provides long-term financing for the maritime sector
   • Includes:
     • Maritime Investment Fund: Rs.20,000 crore, with 49% participation from the Government of India
     • Interest Incentivization Fund: Rs.5,000 crore to reduce effective cost of debt and improve project bankability
3. Shipbuilding Development Scheme (SbDS):
   • Budgetary outlay: Rs.19,989 crore
   • Targets expansion of domestic shipbuilding capacity to 4.5 million Gross Tonnage annually