Government Plans ₹70,000-Crore Investment for Shipbuilding and Ports
The central government is set to unveil a ₹70,000-crore package aimed at enhancing shipbuilding, ship repair, and port infrastructure, with plans expected to be presented to the Union Cabinet by mid-September. This initiative includes ₹20,000 crore for a shipping cluster program to develop large-scale maritime hubs and another ₹20,000 crore for the revamped Shipbuilding Financial Assistance Programme (SBFAP 2.0).
Additionally, the package will allocate ₹25,000–30,000 crore for establishing a Maritime Development Fund (MDF). Both the finance ministry and the Ministry of Ports, Shipping, and Waterways (MoPSW) have finalized a policy framework for these initiatives, which are designed to provide financial clarity and infrastructure support while attracting investments from potential joint ventures with Japanese and Korean shipbuilders.
The shipping cluster program aims to create clusters with a capacity of 1.0–1.2 million gross tonnage (GT) each, with plans for direct capital funding for essential infrastructure. States like Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra are being considered, with Tamil Nadu or Odisha likely to host the first cluster.
SBFAP 2.0 will extend for another decade from April 2026, providing Indian shipyards with subsidies to enhance competitiveness. The MDF will offer long-term equity and blended financing sourced from various local and international entities.
