The Union Cabinet, led by Prime Minister Narendra Modi, has approved a comprehensive Rs 69,725 crore package to revitalise India’s shipbuilding and maritime ecosystem over the next ten years.

The initiative is based on a four-pillar strategy focused on strengthening domestic shipbuilding capacity, improving long-term financing, promoting greenfield and brownfield shipyard development, enhancing technical skills, and implementing legal, taxation, and policy reforms. A key component is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 2036, with a budget allocation of Rs 24,736 crore. Additionally, a shipbreaking credit note of Rs 4,001 crore has been set aside to incentivize domestic shipbuilding.

The package also includes the establishment of a National Shipbuilding Mission to oversee sectoral growth. To support financing, the Maritime Development Fund (MDF) has been approved with a corpus of Rs 25,000 crore. Union Minister Ashwini Vaishnaw highlighted the package’s multiplier effect, boosting related industries like engine manufacturing and material procurement.