CABINET CLEARS RS 69,725 CRORE TO BOOST SHIPBUILDING, MARITIME SECTOR

Under the package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until March 31, 2036, with a total corpus of Rs 24,736 crore.

- AGENCIES

The Union Cabinet on Wednesday approved a Rs 69,725 crore package to revitalise India’s shipbuilding and reduce dependence on foreign ships as part of the government’s plan to regain the country’s maritime power.

According to an official statement, the package introduces a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation, and policy reforms to create a robust maritime infrastructure.

“The scheme aims to incentivise shipbuilding in India and includes a Ship-breaking Credit Note with an allocation of Rs 4,001 crore. A National Shipbuilding Mission will also be established to oversee the implementation of all initiatives,” the statement said.

In addition, the Maritime Development Fund (MDF) has been approved with a corpus of Rs 25,000 crore to provide long-term financing for the sector.