Shipbuilding Push
Cabinet approves INR-697-bln plan to scale up shipbuilding industry
This story was originally published at 16:12 IST on 24 September 2025
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--Cabinet OKs INR-697.25-bln plan for shipbuilding, maritime development
NEW DELHI - The Union Cabinet Wednesday approved a package totalling INR 697.3 billion for shipbuilding and maritime sector to boost India's domestic shipbuilding capacity, bolster long-term financing, promote development of shipyards, and enhance skilling, the government said in a press release.
The Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) till March 2036 with a total corpus of INR 247.4 billion. Aimed at incentivising domestic shipbuilding, the scheme includes a shipbreaking credit note which gets an outlay of INR 40 billion.
A Maritime Development Fund will be set up to provide long-term financing for the shipping sector, with an outlay of INR 250 billion. Under this, a Maritime Investment Fund of INR 200 billion will be created, wherein the Centre will hold a 49% stake.
A Shipbuilding Development Scheme will be rolled out to expand the domestic shipbuilding capacity to 4.5 million gross tonnage annually, support mega shipbuilding clusters, infrastructure expansion, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for shipbuilding projects, the statement said. The initiative has been allotted INR 199.9 billion.
The Centre expects the package to generate around 3 million jobs, and attract investments of around INR 4.5 trillion into India's maritime sector. End
Reported by Anand JC
Edited by Vandana Hingorani
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