Big Push To Shipbuilding & Maritime Sector! Modi Govt Approves Rs 69,725 Crore Package - Details

The Union Cabinet chaired by PM Modi has given its nod on September 24, 2025 to a Rs 69,725-crore plan to revitalize India's shipbuilding and maritime sector.

In an official statement, the cabinet said, "The package introduces a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation, and policy reforms to create a robust maritime infrastructure,"

Under this package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until 31 March 2036 with a total corpus of Rs.24,736 crore. The scheme aims to incentivize ship building in India and includes a Shipbreaking Credit Note with an allocation of Rs.4,001 crore. A National Shipbuilding Mission will also be established to oversee the implementation of all initiatives.

Also Read: Ganesh Consumer Products IPO: Check Subscription Status, GMP, And More

Additionally, the Maritime Development Fund (MDF) has been approved with a corpus of Rs.25,000 crore to provide long-term financing for the sector.

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.

Furthermore, 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.

"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," it said.

Currently, the maritime sector supports nearly 95% of the nation’s trade by volume and 70% by value.

At its core lies shipbuilding, often described as the “mother of heavy engineering,” which not only contributes significantly to employment and investment but also enhances national security, strategic independence, and the resilience of trade and energy supply chains.