The central government is preparing a massive financial package worth nearly ₹70,000 crore to boost shipbuilding, ship repair, and port infrastructure. The plan, expected to be cleared by the Union Cabinet by mid-September, is aimed at turning India into a competitive global maritime hub.
Three-part package
According to reports, the package will have three major components:
- Shipping cluster programme: ₹20,000 crore for developing and operationalising new shipping clusters.
- Shipbuilding Financial Assistance Programme (SBFAP 2.0): ₹20,000 crore to extend subsidies for Indian shipyards and improve global competitiveness.
- Maritime Development Fund (MDF): ₹25,000–30,000 crore to provide long-term equity and blended financing.
Together, these schemes are expected to create the policy clarity and capital support needed to attract large-scale investments into the sector.
Shipping clusters in key coastal states
The proposed cluster programme aims to build facilities with a capacity of 1.0–1.2 million gross tonnage (GT) each. These will be backed by government support for breakwaters, dredging, trunk infrastructure, and utilities.
States being considered for the first cluster include Tamil Nadu, Gujarat, Odisha, Andhra Pradesh, and Maharashtra, with Tamil Nadu, Gujarat, or Odisha seen as frontrunners.
Extending shipbuilding support
The new version of the Shipbuilding Financial Assistance Programme will run for another 10 years from April 2026. It is designed to offset cost disadvantages faced by Indian shipyards and support joint ventures with global leaders from Japan and South Korea.
Maritime Development Fund
The proposed Maritime Development Fund, with a ₹25,000–30,000 crore corpus, will draw capital from the government, public sector units, domestic and overseas lenders, and multilateral agencies. The fund is expected to provide equity and blended financing for long-term projects, unlocking fresh momentum for India’s port-led growth strategy.
Towards a stronger maritime future
Officials believe the package could help India modernise its maritime sector, attract foreign partnerships, and position the country as a serious player in global shipping and logistics. By combining subsidies, infrastructure support, and long-term financing, the government aims to reduce India’s dependence on foreign shipyards and strengthen its role in global trade routes.
