Govt set to budget ₹9,800 cr for maritime development

Fund aims to lower capital costs, attract investments in shipyards, coastal infra and waterways

- Subhash Narayan

The ₹25,000 crore MDF was announced by finance minister Nirmala Sitharaman while presenting the budget proposals for 2025-26.

(BLOOMBERG)

The Centre is set to operationalise the ₹25,000 crore Maritime Development Fund (MDF) by allocating ₹9,800 crore to it in the budget.

The fund aims to lower capital costs and attract long-term, low-cost investment into shipyards, coastal infrastructure and inland waterways. The MDF aims to mobilise investment worth ₹1.5 trillion in the shipping sector by 2030, which will play a key role in making India one of the top five shipbuilding and ship-owning nations by 2047, from its current position as the sixteenth.

Union finance minister Nirmala Sitharaman announced the ₹25,000 crore MDF while presenting the budget proposals for 2025-26. The cabinet approved it in September, along with a ₹70,000 crore package for shipbuilding and maritime sectors. The fund will take off now, with funds actually allocated through the budget.

Queries mailed to the ministries of finance and ports, shipping and waterways (MoPSW) remained unanswered till press time.