Cabinet Approves ₹69,725 Cr Shipbuilding Revival 30 Lakh Jobs

Post by : Meena Rani

In a landmark move to strengthen India’s maritime and shipbuilding sector, the Union Cabinet on Wednesday approved a ₹69,725 crore revival package spanning 10 years. Union Minister for Railways, IT, and I&B, Ashwini Vaishnaw, described the initiative as a crucial step in reviving India’s historical legacy in shipbuilding and aligning it with the country’s economic growth vision.

Shipbuilding, often termed the “mother of heavy engineering,” is set to witness a comprehensive transformation under this plan. The government projects the creation of around 30 lakh jobs and expects investments totaling nearly ₹4.5 lakh crore. The reforms are positioned as a cornerstone of PM Modi’s Viksit Bharat 2047 vision, aiming to make India a global maritime powerhouse once again.

Historical and Strategic Significance

Minister Vaishnaw highlighted India’s rich maritime heritage, noting that until the 18th century, Indian ships were among the most advanced globally. Foreign buyers frequently sourced Indian designs, which also influenced European shipbuilding. Reviving this heritage is seen as critical not only for economic growth but also for maintaining India’s strategic advantage in maritime trade.

Maritime transport already handles 95% of India’s trade by volume and 65% by value, underscoring the sector’s importance for national and global commerce.

Four-Pillar Revival Approach

The revival package is structured around four main pillars:

1. Shipbuilding Financial Assistance Scheme

Allocated ₹24,736 crore, this scheme will continue until March 31, 2036. It aims to incentivize domestic shipbuilding, including a Shipbreaking Credit Note with ₹4,001 crore for promoting sustainable practices. A National Shipbuilding Mission will oversee demand coordination, procurement, and international collaborations.

2. Maritime Development Fund

With a corpus of ₹25,000 crore, this fund aims to make financing cheaper and more accessible. It will provide equity financing, promote Indian tonnage, and support infrastructure such as shipyards, repair facilities, and port-linked projects.

3. Shipbuilding Development Scheme

Allocated ₹19,989 crore, this scheme will support the creation of greenfield shipbuilding clusters and the expansion of existing brownfield facilities. The government aims to establish globally competitive hubs capable of attracting both domestic and foreign orders.

4. Legal, Policy, and Process Reforms

The fourth pillar focuses on modernizing maritime laws to align with global standards. Key legislation under review includes the Merchant Shipping Act, Carriage of Goods by Sea Act, and Indian Ports Act, ensuring smoother operations and compliance with international norms.

The reforms are expected to raise India’s shipbuilding capacity to 4.5 million gross tonnage and output to 8.2 million gross tonnage, supporting the construction of over 2,500 vessels and an additional 250 million tonnes per annum of port capacity.

Other Cabinet Decisions

On the same day, the Cabinet also approved decisions worth ₹94,916 crore, including:

• Doubling a railway line in Bihar (₹2,192 crore)

• Construction of a four-lane road (₹3,822.31 crore)

• Productivity-linked bonus for 10,91,146 railway employees (₹1,865.68 crore)

• Schemes for scientific research and skill development (₹2,277.40 crore)

• Expansion of postgraduate and undergraduate medical education (₹15,034.50 crore)

Shift to Swadeshi Digital Tools

Minister Vaishnaw also emphasized India’s push for domestic technology adoption. The Cabinet presentation was prepared using Zoho, a Chennai-based business solutions provider, instead of Microsoft PowerPoint. The minister encouraged citizens to “Switch to Swadeshi,” reflecting the government’s broader Make-in-India push.

While Zoho will manage email and office tools for government operations, the National Informatics Center (NIC) will continue handling platform management and data. This transition marks the first instance of a private contractor handling government digital services, following the 2023 decision to integrate Zoho for official email and internet-based tools.

Implications

The package is poised to transform India’s shipbuilding landscape, reviving the sector’s global competitiveness, creating employment, and enhancing maritime infrastructure. Coupled with financial incentives and legal reforms, this initiative positions India to capitalize on its strategic geographic and historical advantages in shipping and trade.

India shipbuilding revival, maritime sector reforms, Union Cabinet approval, Viksit Bharat 2047