New Delhi, Sep 24 (NationPress) The Union Cabinet, led by Prime Minister Narendra Modi, has recently sanctioned a robust package of Rs 69,725 crore aimed at revitalizing India's shipbuilding and maritime framework.

This extensive initiative is projected to unlock 4.5 million Gross Tonnage of shipbuilding capacity, create nearly 30 lakh jobs, and draw in investments close to Rs 4.5 lakh crore into the maritime sector.

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

This initiative aims to promote shipbuilding in India and features a Shipbreaking Credit Note with a provision of Rs 4,001 crore. A National Shipbuilding Mission will also be established to supervise the execution of all related initiatives.

The package employs a four-pillar strategy designed to bolster domestic capacity, enhance long-term financing, encourage development of greenfield and brownfield shipyards, elevate technical capabilities and skills, and execute legal, taxation, and policy reforms to establish a robust maritime infrastructure, as noted in a Cabinet document.

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

This encompasses a Maritime Investment Fund of Rs 20,000 crore with 49% governmental participation and an Interest Incentivisation Fund of Rs 5,000 crore aimed at reducing the effective cost of debt and enhancing project bankability.

Furthermore, the Shipbuilding Development Scheme (SbDS), with a budgetary outlay of Rs 19,989 crore, aspires to scale domestic shipbuilding capacity to 4.5 million Gross Tonnage annually, support large shipbuilding clusters, expand infrastructure, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for shipbuilding ventures, as stated by the Cabinet.

"Beyond its economic implications, this initiative will bolster national, energy, and food security by enhancing resilience in vital supply chains and maritime routes. It will also fortify India's geopolitical resilience and strategic self-sufficiency, furthering the vision of Aatmanirbhar Bharat and positioning India as a competitive entity in global shipping and shipbuilding," remarked the Cabinet.

Today, the maritime sector serves as a cornerstone of the Indian economy, supporting nearly 95% of the nation’s trade by volume and 70% by value.