The Union Cabinet, led by Prime Minister Narendra Modi, has approved a significant package of Rs 69,725 crore aimed at enhancing India's shipbuilding and maritime sector. This initiative is designed to strengthen domestic capabilities and improve infrastructure through a comprehensive four-pillar strategy focusing on financing, infrastructure development, technical advancement, and policy reforms.

The package extends the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with a total allocation of Rs 24,736 crore. Additionally, a new Shipbreaking Credit Note worth Rs 4,001 crore will be introduced to promote sustainable practices in the industry. A National Shipbuilding Mission will be established to oversee the implementation of these initiatives.

A Maritime Development Fund (MDF) has also been approved, with a total corpus of Rs 25,000 crore. This fund includes a Maritime Investment Fund of Rs 20,000 crore, where the government will hold a 49% stake, and an Interest Incentivization Fund of Rs 5,000 crore aimed at reducing borrowing costs for projects.

Furthermore, the Shipbuilding Development Scheme (SbDS) has been allocated Rs 19,989 crore to increase India's shipbuilding capacity to 4.5 million Gross Tonnage annually. This scheme will support the development of large shipbuilding clusters, enhance infrastructure, and establish the India Ship Technology Centre under the Indian Maritime University. It will also provide risk coverage and insurance support for shipbuilding projects.

The overall package is expected to unlock investments worth Rs 4.5 lakh crore and create nearly 30 lakh jobs in the maritime sector. This sector plays a crucial role in India's economy, handling about 95% of trade by volume and 70% by value. The government aims to bolster national security and enhance strategic autonomy through this initiative, reinforcing vital supply chains and energy routes.