NewsCorporate ActionsIndia Unveils Rs 69,725 Crore Package to Boost Shipbuilding and Maritime SectorIndia Unveils Rs 69,725 Crore Package to Boost Shipbuilding and Maritime Sector
The Union Cabinet has approved a Rs 69,725 crore reforms package for India's shipbuilding and maritime sector. The initiative includes the Shipbuilding Financial Assistance Scheme (Rs 24,736 crore), Maritime Development Fund (Rs 25,000 crore), and Shipbuilding Development Scheme (Rs 19,989 crore). It aims to strengthen domestic capacity, improve financing, promote shipyard development, and enhance technical capabilities. The government expects to unlock 4.5 million gross tonnage of shipbuilding capacity, generate 30 lakh jobs, and attract Rs 4.5 lakh crore in investments.
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In a significant move to revitalize India's shipbuilding and maritime ecosystem, the Union Cabinet has greenlit a comprehensive reforms package worth Rs 69,725 crore. The ambitious initiative, announced by Union Minister Ashwini Vaishnaw, aims to strengthen domestic capacity, improve long-term financing, promote shipyard development, and enhance technical capabilities in the sector.
Four-Pillar Approach
The reform package is structured around four key pillars:
- Strengthening domestic capacity
- Improving long-term financing
- Promoting shipyard development
- Enhancing technical capabilities
Key Components of the Package
Shipbuilding Financial Assistance Scheme (SBFAS)
- Extended until March 31, 2036
- Total corpus: Rs 24,736 crore
- Includes Rs 4,001 crore for Shipbreaking Credit Note
Maritime Development Fund (MDF)
- Total allocation: Rs 25,000 crore
- Aimed at providing long-term financing
- Comprises two sub-funds:
- Maritime Investment Fund: Rs 20,000 crore (49% government participation)
- Interest Incentivisation Fund: Rs 5,000 crore
Shipbuilding Development Scheme (SbDS)
- Allocation: Rs 19,989 crore
- Objective: Expand domestic capacity to 4.5 million gross tonnage annually
- Support development of mega shipbuilding clusters
Implementation and Oversight
A dedicated National Shipbuilding Mission will be established to oversee the implementation of this comprehensive package.
Expected Outcomes
The government anticipates significant benefits from this initiative:
- Unlocking 4.5 million gross tonnage of shipbuilding capacity
- Generation of 30 lakh jobs
- Attracting approximately Rs 4.5 lakh crore in investments
Current Maritime Sector Significance
India's maritime sector plays a crucial role in the nation's trade:
| Aspect | Percentage |
|---|---|
| Trade by volume | 95% |
| Trade by value | 70% |
This substantial investment in the shipbuilding and maritime sector underscores the government's commitment to enhancing India's maritime capabilities and positioning the country as a significant player in the global maritime industry. The multi-faceted approach, combining financial assistance, long-term financing, and infrastructure development, is poised to create a robust ecosystem that can compete on the international stage while boosting domestic employment and economic growth.
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