NEW DELHI: Aiming to position India among the global shipbuilding elite, the govt Wednesday approved an umbrella package involving nearly Rs 70,000 crore in investment in the maritime sector, currently dominated by China, South Korea and Japan. Shipping ministry officials said this marks the most significant reform in the sector since Independence.Announcing the decision, I&B minister Ashwini Vaishnaw said, “Shipbuilding needs deep capital. Only those countries could save the shipbuilding industry historically that gave substantial support to industry.” The package has a four-pillar approach to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, and enhance technical capabilities and skilling.

The three major schemes – Shipbuilding Assistance Scheme (Rs 24,736 crore), Maritime Development Fund (Rs 25,000 crore) and Shipbuilding Development Scheme (Rs 20,000 crore) – are expected to generate Rs 4.5 lakh crore investment and produce over 2,500 vessels. The move aims not only to attract global investment but also to reduce India’s dependence on foreign ships, currently around 95%.PM Narendra Modi called the package a “transformative push for maritime self-reliance,” saying it will unlock 4.5 million Gross Tonnage capacity, generate jobs, and attract investment. Shipping minister Sarbananda Sonowal said the initiative is key to strategic independence, building resilient supply chains and enhancing maritime capabilities, reinforcing India’s geopolitical resilience, and realising Aatmanirbhar Bharat through a developed maritime sector.Under the package, Shipbuilding Financial Assistance Scheme will be extended until March 2036. Vessels costing less than Rs 100 crore will receive 15% assistance, those over Rs 100 crore 20%, and green or hybrid vessels 25%. At least 30% domestic value addition is required to avail benefits. The scheme includes a “ship breaking credit note,” allowing shipowners to claim 40% of a vessel’s scrap value when dismantled at an Indian yard toward constructing a new vessel.