Prime Minister Narendra Modi has announced that India's shipping industry is set to receive a massive boost with a ₹70,000 crore investment package approved by the government. Speaking in Odisha, PM Modi stated that this investment is expected to attract ₹4.5 lakh crore in overall investment into the country's maritime sector.

The approved package aims to revitalize India's shipbuilding industry and promote self-reliance in the maritime domain. The government projects that this initiative will have a significant impact, including the creation of approximately 30 lakh jobs and an increase of 4.5 million gross tonnage in shipbuilding capacity.

The ₹70,000 crore package is structured around a four-pillar approach:

• Strengthening Domestic Capacity: The focus is on enhancing India's ability to build ships within the country, reducing reliance on foreign shipyards.
• Improving Long-Term Financing: The package seeks to provide better financing options for shipbuilding projects, making them more viable.
• Supporting Shipyard Development: This involves promoting the development of both new (greenfield) and existing (brownfield) shipyards, upgrading infrastructure and fostering mega shipbuilding clusters.
• Enhancing Technical Capabilities and Skilling: The initiative includes measures to improve the technical skills of the workforce and promote innovation in the shipbuilding sector.

Key Components of the Package:

• Shipbuilding Financial Assistance Scheme (SBFAS): This scheme has been extended until March 31, 2036, with a total corpus of ₹24,736 crore. It aims to incentivize domestic shipbuilders by providing financial support linked to contracts secured in India. A unique aspect of SBFAS is the Shipbreaking Credit Note, with an allocation of ₹4,001 crore, designed to encourage responsible ship recycling and strengthen India's position as a global leader in shipbreaking.
• Maritime Development Fund (MDF): A fund of ₹25,000 crore has been approved to support long-term financing in the sector. This includes a ₹20,000 crore Maritime Investment Fund with 49% government participation and a ₹5,000 crore Interest Incentivization Fund to lower debt costs and improve the financial feasibility of projects.
• Shipbuilding Development Scheme (SbDS): With a budget of ₹19,989 crore, this scheme aims to increase domestic shipbuilding capacity to 4.5 million Gross Tonnage per year. It focuses on boosting mega shipbuilding clusters, expanding infrastructure, establishing the India Ship Technology Centre under the Indian Maritime University, and offering risk coverage, including insurance support for shipbuilding projects.
• National Shipbuilding Mission: To ensure seamless coordination, the government will establish a National Shipbuilding Mission to manage all related initiatives.

PM Modi emphasized the importance of shipbuilding for trade and national security, highlighting the crucial role ships play in ensuring uninterrupted imports and exports, especially during conflicts. The government's goal is to propel India into the top 10 countries globally for both shipbuilding and ship ownership. Currently, India ranks 16th in both categories, with only 7% of Indian-owned ships being built in India. The approved schemes are expected to contribute significantly to achieving this goal.