The Union Cabinet has approved a ₹69,725 crore package to transform India’s shipbuilding and maritime sector through a comprehensive four-pillar approach. The initiative aims to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and introduce legal, taxation, and policy reforms to build robust maritime infrastructure.
As part of the package, the Shipbuilding Financial Assistance Scheme (SBFAS) has been extended until 31 March 2036 with a total corpus of ₹24,736 crore, including a Shipbreaking Credit Note allocation of ₹4,001 crore. A National Shipbuilding Mission will oversee its implementation.
The Cabinet has also approved the Maritime Development Fund (MDF) with a corpus of ₹25,000 crore, comprising a Maritime Investment Fund of ₹20,000 crore with 49% government participation and an Interest Incentivization Fund of ₹5,000 crore to reduce debt costs and improve project bankability.
Additionally, the Shipbuilding Development Scheme (SbDS), with an outlay of ₹19,989 crore, seeks to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually. It will support mega shipbuilding clusters, strengthen infrastructure, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for shipbuilding projects.
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The package is projected to unlock 4.5 million Gross Tonnage of shipbuilding capacity, create nearly 30 lakh jobs, and attract investments of about ₹4.5 lakh crore into the maritime sector. It will enhance national, energy, and food security by strengthening critical supply chains and maritime routes while advancing India’s strategic self-reliance under the vision of Aatmanirbhar Bharat.
With shipbuilding recognised as the “mother of heavy engineering,” the move underscores its economic, strategic, and historical significance. The maritime sector, which handles 95% of India’s trade by volume and 70% by value, will gain a strong push to position the country as a competitive global player in shipping and shipbuilding.