Govt approves ₹69,725 crore package with 4-pillar plan to expand shipbuilding and maritime capacity.
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a ₹69,725 crore package aimed at revitalising India’s shipbuilding and maritime sector. The initiative follows a four-pillar approach to strengthen domestic shipbuilding capacity, improve financing access, develop shipyards, boost technical capabilities, and streamline legal and policy frameworks.
A key measure under the package is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with a corpus of ₹24,736 crore, including ₹4,001 crore allocated for a Shipbreaking Credit Note. The government has also cleared the Maritime Development Fund with ₹25,000 crore, comprising a Maritime Investment Fund of ₹20,000 crore and an Interest Incentivisation Fund of ₹5,000 crore to cut borrowing costs.
Additionally, the Shipbuilding Development Scheme, with an outlay of ₹19,989 crore, will raise domestic capacity to 4.5 million gross tonnage annually, support mega clusters, and establish an India Ship Technology Centre. The package is expected to create 30 lakh jobs, draw ₹4.5 lakh crore in investments, and strengthen India’s strategic maritime resilience under Aatmanirbhar Bharat.
Source: PIB
