Centre Approves Rs. 69,725 Crore Push to Transform India into Global Shipbuilding Hub

New Delhi: The Centre has approved a comprehensive ?69,725 crore package aimed at strengthening India's shipbuilding industry through enhanced domestic manufacturing capacity, long-term maritime financing, policy reforms and workforce development.

Replying to a question in the Lok Sabha, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the package is designed to make Indian shipyards more globally competitive and accelerate the country's emergence as a major shipbuilding nation.

A key component of the package is the Shipbuilding Financial Assistance Scheme, which has been allocated ?24,736 crore to help offset the cost disadvantage faced by Indian shipyards compared to their international counterparts.

The government has also approved a ?25,000 crore Maritime Development Fund to provide long-term financing support to the shipbuilding and maritime sectors. The fund comprises a ?20,000 crore Maritime Investment Fund and a ?5,000 crore Interest Incentivisation Fund.

Another major initiative is the Shipbuilding Development Scheme (SbDS), backed by ?19,989 crore, which aims to increase India's annual shipbuilding capacity to 4.5 million gross tonnage through the development of new greenfield clusters and expansion of existing shipyards.

According to the Ministry of Ports, Shipping and Waterways, these initiatives are aligned with the goals outlined in the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, which seek to position India as a globally competitive shipbuilding hub.

The government has also introduced policy reforms to support the sector. Large vessels have been granted infrastructure status, with the notification covering Indian-flagged commercial vessels of 10,000 gross tonnage (GT) and above from September 19, 2025. The benefit also extends to vessels of 1,500 GT and above if they are built in India.

To ensure a steady flow of orders for domestic shipyards, the government has prepared a fleet acquisition plan involving more than 400 vessels, providing long-term demand visibility for the industry.

In addition, the Centre has granted in-principle approval for the development of three greenfield shipbuilding clusters in Andhra Pradesh, Gujarat and Tamil Nadu under the Shipbuilding Development Scheme.

With inputs from IANS