Cabinet approves ₹69,725 crore package to revive shipbuilding and maritime sector
The Union Cabinet approved a ₹69,725 crore four-pillar package on 24 September 2025 to strengthen India's shipbuilding and maritime ecosystem, including extending the Shipbuilding Financial Assistance Scheme to 2036.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi approved a ₹69,725 crore package on 24 September 2025 to revitalise India's shipbuilding and maritime sector through a four-pillar approach. The Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until 31 March 2036 with a corpus of ₹24,736 crore, including a Shipbreaking Credit Note of ₹4,001 crore. A Maritime Development Fund of ₹25,000 crore will provide long-term finance, comprising a ₹20,000 crore Maritime Investment Fund with 49% Government participation and a ₹5,000 crore Interest Incentivisation Fund. The Shipbuilding Development Scheme, with an outlay of ₹19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage. A National Shipbuilding Mission will oversee implementation.
Key facts
- Approved
- 24 Sep 2025, Union Cabinet
- Total package
- ₹69,725 crore, four pillars
- SBFAS
- Extended to 31 Mar 2036; corpus ₹24,736 crore (incl. ₹4,001 crore Shipbreaking Credit Note)
- Maritime Development Fund
- ₹25,000 crore = ₹20,000 crore Maritime Investment Fund (49% GoI) + ₹5,000 crore Interest Incentivisation Fund
- Shipbuilding Development Scheme
- ₹19,989 crore; capacity to 4.5 million GT
- Oversight
- National Shipbuilding Mission
Practice MCQs 4 questions
What is the total size of the shipbuilding and maritime package approved by the Union Cabinet on 24 September 2025?
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Correct answer: A — ₹69,725 crore
The Cabinet approved a ₹69,725 crore four-pillar package for the shipbuilding and maritime sector.
Until when has the Shipbuilding Financial Assistance Scheme been extended under the September 2025 package?
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Correct answer: C — 31 March 2036
SBFAS is extended until 31 March 2036 with a total corpus of ₹24,736 crore.
The Shipbuilding Development Scheme approved in September 2025 aims to expand domestic shipbuilding capacity to what level?
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Correct answer: D — 4.5 million GT
The ₹19,989 crore Shipbuilding Development Scheme aims to expand capacity to 4.5 million Gross Tonnage.
Consider the following statements about the Maritime Development Fund approved in September 2025: 1. It has a corpus of ₹25,000 crore. 2. Its Maritime Investment Fund has 49% participation from the Government of India. Which of the above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct: the ₹25,000 crore fund includes a ₹20,000 crore Maritime Investment Fund with 49% GoI participation and a ₹5,000 crore Interest Incentivisation Fund.