PM Modi Approves Rs 69,725 Crore Package To Boost India’s Shipbuilding And Maritime Sector

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 69,725 crore package to strengthen India’s shipbuilding and maritime sector. The initiative aims to expand domestic shipbuilding capacity, improve financing, and attract investments. PM Modi highlighted that the package will unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract about Rs 4.5 lakh crore in investments. The package is designed to support infrastructure expansion, promote greenfield and brownfield projects, and enhance technical capabilities. Officials said the move will also boost India’s strategic and economic self-reliance in maritime trade and shipping.

Shipbuilding Financial Assistance Scheme Extended to 2036

Under the new package, the Shipbuilding Financial Assistance Scheme (SBFAS) will continue until March 31, 2036, with a corpus of Rs 24,736 crore. The scheme provides incentives for domestic shipbuilding and includes a Shipbreaking Credit Note of Rs 4,001 crore. A National Shipbuilding Mission will oversee implementation and ensure policy coordination. Officials said the scheme will improve domestic capacity, support skill development, and create a competitive shipbuilding ecosystem. The initiative will also provide insurance and risk coverage for projects, enabling both private and public shipyards to invest confidently in new shipbuilding ventures.

Maritime Development Fund to Support Long-Term Financing

The Cabinet approved the Maritime Development Fund with a total corpus of Rs 25,000 crore, including a Maritime Investment Fund of Rs 20,000 crore and an Interest Incentivization Fund of Rs 5,000 crore. The government will participate in 49% of the investment fund. The initiative aims to reduce the cost of debt, improve project bankability, and support long-term financing for shipbuilding projects. Officials noted that the fund will strengthen investment in greenfield and brownfield shipyards, promote technological upgrades, and improve infrastructure across India’s ports and maritime facilities. The fund will accelerate growth in domestic shipbuilding capacity and maritime trade.

Shipbuilding Development Scheme Expands Domestic Capacity

The Shipbuilding Development Scheme (SbDS), with a budget of Rs 19,989 crore, will expand India’s shipbuilding capacity to 4.5 million Gross Tonnage annually. The scheme will support mega shipbuilding clusters, infrastructure development, and the creation of the India Ship Technology Centre under the Indian Maritime University. Officials said it will also provide insurance coverage and risk mitigation for shipbuilding projects. The scheme aims to strengthen national security, energy resilience, and global trade competitiveness. By enhancing domestic shipbuilding capacity, India expects to position itself as a leading player in international maritime trade and shipbuilding markets.

Experts said the Rs 69,725 crore package will create nearly 30 lakh jobs, attract Rs 4.5 lakh crore in investments, and strengthen supply chains. The initiative will boost India’s geopolitical and economic resilience, support energy and food security, and reinforce strategic independence. Shipbuilding, described as the “mother of heavy engineering,” will benefit from technology upgrades and workforce development. The move aligns with the vision of Aatmanirbhar Bharat and reinforces India’s position in global shipping and trade. Officials noted that strengthening the maritime sector will directly impact India’s economic growth, industrial capacity, and strategic security.