Union Cabinet to Review Rs 70,000 Cr Maritime Projects Soon

The Union Cabinet, led by Prime Minister Narendra Modi, has given its nod to a massive Rs 69,725 crore package that will give a new life to India's shipbuilding and maritime ecosystem. This establishment of greenfield and brownfield shipyards, workers' advancement in skills, and carry out legal, taxation, and policy reforms for the creation of robust maritime infrastructure.

“Shipbuilding is at the core of heavy engineering and thereby is the mother of the industries, which range from engine manufacturing to the purchase of materials. This scheme, we are talking about, will impel such chain reactions all over the economy,” said Union Minister Ashwini Vaishnaw.

The proposal has a component of Shipbreaking Credit Note allocation of Rs 4001 crores for incentivising Indian shipbuilding and the constitution of National Shipbuilding Mission to ensure orderly growth of the sector.

The Maritime Development Fund (MDF) with Rs 25,000 crore is proposed as a measure for long-term finance comprising a Rs 20,000 crore Maritime Investment Fund and a Rs 5,000 crore Interest Incentivization Fund to lower the cost of the debt and improve project bankability.

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On the other hand, the Shipbuilding Development Scheme (SbDS) of 19,989 crore rupees is aimed at not only increasing the shipbuilding capacity of India to 4.5 million Gross Tonnage per annum but also the establishment of mega shipbuilding clusters, creation of India Ship Technology Centre under the Indian Maritime University, and subsidy covering loss including taking over of insurance for shipbuilding projects.