Cabinet approves Rs 697,250 crore for shipbuilding and offshore industries
The union cabinet, chaired by Prime Minister Narendra Modi, approved a comprehensive package of Rs 697,250 crore on September 24 to revitalize India’s shipbuilding and maritime ecosystem.
The total packaging is expected to unlock the gross tonnage of 4.5 million shipbuilding capacity, generate nearly 3 million jobs and attract approximately Rs 4.5 billion of investment into the offshore sector in India.
Under this package, the Shipbuilding Financial Assistance Scheme (SBFA) will be extended until March 31, 2036, with a total of Rs 24,736 crore.
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The plan aims to inspire the shipbuilding industry in India and includes shipbuilding credit notes, allocating Rs 400.1 crore. National shipbuilding
Tasks will also be established to monitor the implementation of all plans.
A cabinet noted that the packaging aims to enhance domestic capacity, improve long-term financing, promote the development of Greenfield and Brownfield shipyards, enhance technical capacity and skills, and implement legal, tax and policy reforms to create strong offshore infrastructure to enhance domestic capacity, promote the development of Greenfield and Brownfield shipyards, aims to enhance domestic capacity, promote long-term financing, aiming to build strong offshore infrastructure.
In addition, the Maritime Development Fund (MDF) has received corpus approval of Rs 250,000 crore to provide long-term financing for the sector.
This includes a 49% offshore investment fund with a total of Rs 2 billion, and a 50 million interest incentive fund with a 49% interest rate incentive fund to reduce the effective cost of debt and increase project deposits.
In addition, the budget expenditure of the Shipbuilding Development Programme (SBDS) is 199,899 crore, aiming to expand the capacity of domestic shipbuilding to 4.5 million gross tonnages per year, support large shipbuilding groups, infrastructure expansion, establish Indian Ship Technology Centre, and establish under Indian Ship Technology Centre under Indian Ship Technology Centre
According to the cabinet, the offshore university and provides risk coverage, including insurance support for shipbuilding projects.
“In addition to its economic impact, the initiative will enhance national, energy and food security by increasing the resilience of key supply chains and maritime routes. It will also enhance India’s geopolitical resilience and strategic self-reliance, drive the vision of Aatmanirbhar Bharat and position India as a powerful force in global transportation and shipbuilding and as a competitive force.”
Today, the maritime industry remains the backbone of India’s economy, with volume as quantity, nearly 95% of trade backing, valued at 70%.
