4-Pillar Approach to Strengthen Shipbuilding, Maritime Financing, and Domestic Capacity

Context: The Union Cabinet approved a ₹69,725 crore package to revitalize India’s shipbuilding and maritime sector, anchored on a 4-Pillar Approach to enhance financing, capacity, technology, and reforms.

About 4-Pillar Approach to Strengthen Shipbuilding, Maritime Financing, and Domestic Capacity:

What It Is?

• A comprehensive policy package for India’s maritime ecosystem, extending to 2036.

• Introduces financial support, infrastructure expansion, skill development, and legal-policy reforms.

• Seeks to make India a global hub for shipbuilding and shipping services.

• Expand domestic shipbuilding capacity to 4.5 million Gross Tonnage.

• Create nearly 30 lakh jobs and attract ₹4.5 lakh crore investment.

• Ensure energy, food, and national security through resilient maritime supply chains.

The Four Pillars:

• Shipbuilding Financial Assistance Scheme (SBFAS): Extended till 31 March 2036, with ₹24,736 crore corpus. Incentivises Indian shipyards, includes Shipbreaking Credit Note (₹4,001 crore).

• Extended till 31 March 2036, with ₹24,736 crore corpus.

• Incentivises Indian shipyards, includes Shipbreaking Credit Note (₹4,001 crore).

• Maritime Development Fund (MDF): Corpus of ₹25,000 crore for long-term financing. Includes Maritime Investment Fund (₹20,000 crore, 49% GoI share) and Interest Incentivization Fund (₹5,000 crore).

• Corpus of ₹25,000 crore for long-term financing.

• Includes Maritime Investment Fund (₹20,000 crore, 49% GoI share) and Interest Incentivization Fund (₹5,000 crore).

• Shipbuilding Development Scheme (SbDS): Outlay of ₹19,989 crore. Expands shipbuilding capacity, supports mega clusters, establishes India Ship Technology Centre, provides insurance and risk coverage.

• Outlay of ₹19,989 crore.

• Expands shipbuilding capacity, supports mega clusters, establishes India Ship Technology Centre, provides insurance and risk coverage.

• National Shipbuilding Mission & Reforms: Mission to coordinate schemes and monitor progress. Focus on greenfield and brownfield shipyards, skill training, taxation reforms, and legal framework.

• Mission to coordinate schemes and monitor progress.

• Focus on greenfield and brownfield shipyards, skill training, taxation reforms, and legal framework.

Relevance in UPSC Syllabus:

• GS-III (Economy & Infrastructure): Industrial growth, shipping industry, Make in India, Atmanirbhar Bharat.

• GS-II (Governance & Policy): Government schemes, maritime security, centre-state coordination in infrastructure.

• Essay & Ethics: Themes of self-reliance, global competitiveness, and sustainable economic growth.