The Indian government has approved a substantial financial package of Rs 69,725 crore aimed at enhancing the domestic shipbuilding sector. This initiative is designed to bolster shipbuilding capacity, maritime financing, and skill development, thereby revitalizing the industry. Union Minister Sarbananda Sonowal highlighted that the package includes a Shipbuilding Financial Assistance Scheme with an allocation of Rs 24,736 crore, intended to mitigate the cost disadvantages faced by Indian shipyards compared to their global counterparts.
A significant portion of the package comprises a Maritime Development Fund, which features a total corpus of Rs 25,000 crore. This fund will provide long-term financing support for the shipbuilding and maritime sectors, including a Maritime Investment Fund of Rs 20,000 crore and an Interest Incentivisation Fund of Rs 5,000 crore. Additionally, the government has introduced the Shipbuilding Development Scheme (SbDS) with a budget of Rs 19,989 crore, aimed at increasing annual output capacity to 4.5 million gross tonnage through both greenfield and brownfield expansions.
These measures align with the objectives outlined in the Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047. Policy reforms have also been initiated, such as classifying large vessels as infrastructure and implementing demand aggregation strategies. The government has approved plans for developing three new shipbuilding clusters in Andhra Pradesh, Gujarat, and Tamil Nadu under the SbDS, further positioning India as a competitive player in the global shipbuilding arena.
