ENA Sectors 2025-09-16 16:16:30 <p><span style="font-size:14px"><strong>New Delhi, Sep 16 (KNN)</strong> The Union Finance Ministry is planning a major funding push to strengthen Indias shipbuilding sector, with a proposed budgetary support of Rs 5,000 crore to provide low-interest loans for shipping projects, according to officials aware of the matter.</span></p> <p><span style="font-size:14px">As part of this plan, the ministry is considering offering a 3 per cent interest subsidy under the proposed Rs 25,000 crore Maritime Development Fund.</span></p> <p><span style="font-size:14px">This support aims to make borrowing cheaper for companies looking to build ships in India or acquire vessels under the Indian flag, thereby helping them compete globally on financing costs.</span></p> <p><span style="font-size:14px">The move aligns with the Ministry of Ports, Shipping and Waterwayss plan to attract up to Rs 75,000 crore in investments across three greenfield shipbuilding clusters.</span></p> <p><span style="font-size:14px">The interest subsidy is expected to encourage more Indian companies to add locally made or Indian-flagged ships to their fleets, providing shipbuilders with assured orders.</span></p> <p><span style="font-size:14px">India currently spends around USD 75 billion each year leasing foreign ships due to limited domestic manufacturing. The country contributes less than 1 per cent to the global shipbuilding market, which is dominated by China, South Korea, and Japan.</span></p> <p><span style="font-size:14px">Data from the Directorate General of Shipping shows India has only about 1,550 ships under its flag, representing just 2 per cent of global shipping capacity.</span></p> <p><span style="font-size:14px">The Maritime Development Fund is expected to receive Cabinet approval soon. It will have a Rs 20,000 crore initial corpus&mdash;Rs 9,800 crore from the Centre and Rs 10,200 crore from pension funds, private equity, and major ports.</span></p> <p><span style="font-size:14px">The fund will offer equity, debt, viability gap funding, and buyer credit to shipbuilding, repair, and related infrastructure projects.</span></p> <p><span style="font-size:14px">Experts believe this could modernise Indias shipbuilding capabilities, boost port-linked infrastructure, and create maritime-industrial ecosystems, ultimately helping India emerge among the top 10 shipbuilding nations by 2030 and top five by 2047.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 43514 https://knnindia.co.in/news/newsdetails/sectors/government-plans-rs-5000-crore-push-to-boost-shipbuilding-sector 2025-09-16 16:16:30 knnindia.co.in