Following Prime Minister Narendra Modi’s announcement of a ₹70,000 crore initiative to boost maritime activities and indigenous shipbuilding, the Union Cabinet is set to consider a comprehensive package of three schemes. These proposals, which were outlined in the budget speech by Finance Minister Nirmala Sitharaman, include a Maritime Development Fund (MDF) worth ₹25,000 crore and a Shipbuilding Cluster Program of equal value.
The Shipbuilding Cluster Program is specifically designed to support the development of new “greenfield” shipyards and the expansion of existing “brownfield” shipyards, thereby bolstering the nation’s shipbuilding ecosystem. The third key component of the package is a Shipbuilding Financial Assistance Policy, which allocates ₹20,000 crore to provide financial support to states involved in shipbuilding.
The Ministry of Ports, Shipping and Waterways is in active discussions with the central cabinet, with the proposals including several new provisions and modifications. A notable addition is a ₹2,000 crore provision to protect shipbuilders from buyer defaults. The swift consideration of this package underscores the government’s commitment to enhancing India’s maritime capabilities and positioning it as a major player in global shipping.