The central government is preparing a ₹70,000-crore package to strengthen shipbuilding, ship repair, and port infrastructure, according to a report. The plan is expected to go before the Union Cabinet by mid-September.
The package will include:
- ₹20,000 crore for a shipping cluster programme to create large-scale maritime hubs.
- ₹20,000 crore under a revamped Shipbuilding Financial Assistance Programme (SBFAP 2.0).
- ₹25,000–30,000 crore for establishing a Maritime Development Fund (MDF).
A policy framework for the three schemes has been finalised following consultations between the finance ministry and the ministry of ports, shipping and waterways (MoPSW). Officials said the measures will provide financial clarity, infrastructure support, and attract investment—including potential joint ventures with Japanese and Korean shipbuilding majors for new greenfield clusters.
The shipping cluster programme targets clusters with 1.0–1.2 million gross tonnage (GT) capacity each, supported by direct capital funding for breakwaters, dredging, trunk infrastructure, and utilities. States under consideration include Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra, with the first cluster likely to come up in Tamil Nadu, Gujarat, or Odisha.
The extended SBFAP 2.0 will run for another 10 years from April 2026, offering subsidies to Indian shipyards to offset cost disadvantages and improve competitiveness.
The proposed Maritime Development Fund, with a corpus of ₹25,000–30,000 crore, will provide long-term equity and blended financing, sourced from government, PSUs, domestic and foreign lenders, and multilateral agencies.
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