India To Launch Rs 30,000 Crore Maritime Development Fund For Shipbuilding And Repairs

The Indian government is set to establish a Rs 30,000 crore Maritime Development Fund to bolster the shipbuilding and repair industry, Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal announced.

This initiative complements a Rs 1.5 lakh crore investment plan aimed at transforming the country’s ports sector over the next five years.

The ambitious upgrade plan includes the development of six deep-draft ports, two transshipment hubs, and the integration of green and smart port technologies.

India's shipbuilding industry holds immense strategic and economic importance. With high growth potential, it can create numerous job opportunities and contribute significantly to the gross domestic product (GDP).

The sector’s indirect benefits, spanning industries like steel, engineering equipment, and port infrastructure, further amplify its significance.

The minister also revealed plans for three mega shipbuilding and repair clusters, coupled with the extension of the shipbuilding financial assistance programme, reports Economic Times.

Incentives for Domestic Shipbuilding

The proposed Maritime Development Fund is a significant step toward revitalising the domestic shipbuilding sector. Furthermore, a credit note scheme is being prepared to incentivise shipowners to scrap outdated vessels in India and replace them with ships constructed in local shipyards.

Sonowal outlined the government’s long-term objective of establishing India as a world leader in ship recycling by 2030. "Currently, 85 per cent of Indian ship recycling yards comply with the Hong Kong Convention, ensuring environmentally and labor-friendly practices," he said.

Addressing the Sagarmanthan Maritime Thought Leadership Forum in New Delhi, the minister highlighted India's pivotal position in shaping global maritime policies and trade. He stressed the importance of leveraging these developments to enhance India’s competitiveness in the international maritime sector.