Cabinet approves Rs 69,725 Cr package to boost shipbuilding, maritime sector

New Delhi, Sep 24: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a comprehensive package worth Rs 69,725 crore to revitalise India’s shipbuilding and maritime ecosystem.

The initiative is designed to expand domestic capacity, provide long-term financing, develop shipyards, enhance technical skills, and introduce legal and policy reforms to strengthen the sector.As part of the package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended till March 31, 2036, with a corpus of ₹24,736 crore. The scheme also includes a Shipbreaking Credit Note worth ₹4,001 crore. A National Shipbuilding Mission will be set up to oversee implementation.

The Cabinet also cleared the creation of a Maritime Development Fund (MDF) with a corpus of Rs 25,000 crore to provide long-term financing. This includes a Maritime Investment Fund of Rs 20,000 crore, with 49 percent government participation, and an Interest Incentivization Fund of Rs 5,000 crore to reduce debt costs. Additionally, the Shipbuilding Development Scheme (SbDS), with an outlay of Rs 19,989 crore, will expand shipbuilding capacity to 4.5 million gross tonnage annually, support mega clusters, and establish an India Ship Technology Centre under the Indian Maritime University.

The government expects the package to unlock 4.5 million gross tonnage of shipbuilding capacity, attract investments worth Rs 4.5 lakh crore, and generate nearly 30 lakh jobs. Officials said the initiative would also bolster national, energy, and food security by strengthening supply chains, while enhancing India’s strategic self-reliance and positioning it as a competitive global player in shipbuilding.

India, which handles 95 percent of its trade by volume and 70 percent by value through maritime routes, has long relied on its seafaring tradition. The government said this package would advance the vision of Aatmanirbhar Bharat by reinforcing the country’s maritime capabilities in both economic and strategic domains.