Government Approves ₹69,725 Crore Plan for Maritime and Shipbuilding Development

On September 24, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, cleared a package worth ₹69,725 crore for India’s shipbuilding and maritime sector. Information and Broadcasting Minister Ashwini Vaishnaw said the plan is to create a structured framework for the industry.

Four-Pillar Approach

According to the government, the package rests on 4 pillars: strengthening domestic shipbuilding capacity, expanding financing options, promoting both greenfield and brownfield shipyards, and introducing reforms in legal, taxation, and policy matters. Skill development and technical training are also included in the plan.

Shipbuilding Financial Assistance Scheme

The Shipbuilding Financial Assistance Scheme (SBFAS) has been extended until March 31, 2036, with a budgetary allocation of ₹24,736 crore. It also includes a Shipbreaking Credit Note valued at ₹4,001 crore. A National Shipbuilding Mission will be set up to oversee all related activities and ensure coordination across schemes.

Maritime Development Fund

The Cabinet has also approved the creation of a Maritime Development Fund (MDF) with a corpus of ₹25,000 crore. This includes a ₹20,000 crore Maritime Investment Fund, in which the government will hold 49% participation. An additional ₹5,000 crore has been earmarked under the Interest Incentivization Fund to bring down the effective cost of debt.

Shipbuilding Development Scheme

The Shipbuilding Development Scheme (SbDS) carries an outlay of ₹19,989 crore. It will support the expansion of domestic capacity to 4.5 million Gross Tonnage per year, encourage the growth of mega shipbuilding clusters, and provide infrastructure support. The scheme also proposes to establish the India Ship Technology Centre at the Indian Maritime University and offer risk coverage and insurance for shipbuilding projects.

Read more: Swan Defence and Gujarat Maritime Board Ink ₹4,250 Crore Deal to Boost India's Shipbuilding Sector!

Conclusion

The government expects the package to generate 30 lakh jobs and attract investments of nearly ₹4.5 lakh crore. It is also projected to unlock 4.5 million Gross Tonnage in shipbuilding capacity, contributing to the overall growth of the maritime sector.

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