Union Cabinet Approves ₹69,725 Crore Shipbuilding Package

On 24th September 2025, the Union Cabinet approved a ₹69,725 crore package to revitalize India’s shipbuilding sector, reduce dependence on foreign ships, and strengthen the country’s maritime power.

Key Points

Four-Pillar Approach: The package adopts a four-pillar strategy to strengthen domestic shipbuilding capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical skills, and implement legal, taxation, and policy reforms to create robust maritime infrastructure.
Shipbuilding Financial Assistance Scheme (SBFAS): The scheme will be extended until 31st March 2036 with a total corpus of ₹24,736 crore, including a Shipbreaking Credit Note allocation of ₹4,001 crore, and the establishment of a National Shipbuilding Mission to oversee implementation.
Maritime Development Fund (MDF): The Cabinet approved a ₹25,000 crore fund to provide long-term financing, including a ₹20,000 crore Maritime Investment Fund with 49% government participation and a ₹5,000 crore Interest Incentivisation Fund to reduce debt costs and improve project bankability.
Shipbuilding Development Scheme (SbDS): With a budgetary outlay of ₹19,989 crore, the scheme will expand domestic capacity to 4.5 million gross tonnage annually, support mega shipbuilding clusters, develop infrastructure, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage including insurance for shipbuilding projects.