By Prime Minister Narendra

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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a comprehensive Rs 69,725 crore package to revitalize India’s shipbuilding and maritime ecosystem. The initiative introduces a four-pillar strategy aimed at strengthening domestic capacity, improving long-term financing, promoting greenfield and brownfield shipyard development, enhancing technical capabilities and skilling, and implementing legal, taxation, and policy reforms to create robust maritime infrastructure.This marks the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until 31 March 2036, with a total corpus of Rs 24,736 crore.”We have made a commitment, and a major part of it is shipbuilding and the maritime sector. Today, a package of approximately ₹70,000 crore, to be precise, ₹69,725 crore , has been approved. This is a 10-year program. The importance of this program is well known. Shipbuilding is the mother of heavy engineering. It is extremely important because starting shipbuilding also drives many other industries. It has multiple multiplier effects. When shipbuilding starts, it stimulates engine manufacturing, procurement of various materials, and the development of new materials,” said Union Minister Ashwini Vaishnaw, while announcing the Cabinet’s decisions.This includes a Shipbreaking Credit Note allocation of Rs 4,001 crore to incentivize shipbuilding in India. A National Shipbuilding Mission will also be established to oversee the implementation of all initiatives, ensuring coordinated growth and development of the sector.Live EventsFurther, the Maritime Development Fund (MDF) has been approved with a corpus of Rs 25,000 crore to provide long-term financing. This includes a Maritime Investment Fund of Rs 20,000 crore, with 49% participation from the Government of India, and an Interest Incentivization Fund of Rs 5,000 crore to reduce the effective cost of debt and improve project bankability.Meanwhile, the Shipbuilding Development Scheme (SbDS), with a budgetary outlay of Rs 19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually, support mega shipbuilding clusters and infrastructure expansion, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for shipbuilding projects.The overall package is expected to unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments of approximately Rs 4.5 lakh crore into India’s maritime sector. Beyond its economic impact, the initiative aims to strengthen national, energy, and food security by enhancing resilience across critical supply chains and maritime routes. It is also designed to reinforce India’s geopolitical resilience and strategic self-reliance, advancing the vision of Aatmanirbhar Bharat and positioning India as a competitive force in global shipping and shipbuilding.Add as a Reliable and Trusted News Source Add Now!
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Read More News onShipbuilding Development SchemeIndia shipbuilding packagemaritime sector investmentRs 69,725 crore packagejob generation in shipbuildingmaritime financingPrime Minister Narendra Modidomestic shipbuilding capacitysupply chain resiliencemaritime routes security

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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onShipbuilding Development SchemeIndia shipbuilding packagemaritime sector investmentRs 69,725 crore packagejob generation in shipbuildingmaritime financingPrime Minister Narendra Modidomestic shipbuilding capacitysupply chain resiliencemaritime routes security(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless