Ship-building gets big Cabinet boost

In a major push to accelerate India’s economic growth and boost critical sectors, the Union Cabinet on Wednesday cleared a slew of decisions with far-reaching implications for shipbuilding, maritime infrastructure, healthcare, scientific research, and Bihar’s connectivity.

- Gaurav Vivek Bhatnagar

The measures, collectively worth over %90,000 crore, are expected to create jobs, improve infrastructure, and strengthen India’s self-reliance in multiple sectors.

The highlight of the Cabinet’s decisions was the approval of a ¥69,725-crore package aimed at revitalizing the shipbuilding and maritime sector through a comprehensive four-pillar strategy. This includes extending the Shipbuilding Financial Assistance Scheme (SBFAS) till March 31, 2036 at a cost of 24,736 crore, and introducing a Shipbreaking Credit Note worth %4,001 crore to incentivise domestic shipbuilding.

A National Shipbuilding Mission will be set up to coordinate initiatives across ministries and drive capacity building. To address financing challenges, the Cabinet cleared the creation of a 25,000-crore Maritime Development Fund (MDF), which includes a 20,000-crore Maritime Investment Fund with 49 per cent government participation and a 5,000crore Interest Incentivization Fund to make projects more bankable.