Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, has said that the government is “actively exploring” tax and policy interventions to strengthen India’s maritime sector, alongside a newly approved ₹70,000 crore package aimed at boosting shipbuilding and allied industries.
After the Union Cabinet approves of the scheme on Monday, Sonowal said the initiative seeks to transform India into a “design-build-finance-own-repair-recycle powerhouse” in the global maritime economy.
“The vision is to ensure that a larger share of India’s export-import cargo is carried on Indian-built, Indian-owned vessels,” he said, adding that the plan will support long-term competitiveness while reducing operational inefficiencies.
Implementation Roadmap
According to the minister, the first year of implementation will see the operationalisation of a Maritime Development Fund, the rollout of updated shipbuilding assistance guidelines, and the introduction of a ship-breaking credit-note framework.
Within 12–24 months, the government expects to see growth in order books, commissioning of brownfield expansions, and ramp-up of vendor parks. By the third year, the first shipbuilding cluster special purpose vehicle (SPV) is expected to reach advanced stages of development.
“Over 5–6 years, greenfield cluster berths and integrated facilities will begin operations, driving a step-change in India’s shipbuilding output. The schemes are open for new commitments until March 2036,” Sonowal said.
Policy and Tax Reforms Under Consideration
The minister confirmed that the government is examining industry demands for tax incentives, including reforms related to vessel registration, Maintenance, Repair and Overhaul (MRO) services, Tax Deducted at Source (TDS) for maritime professionals, and support for domestic manufacturing of marine-grade steel.
“There is strong interest from East Asia and Europe, including global shipbuilders, engine and propulsion majors, and specialised system suppliers in next-generation fuels such as LNG, methanol, and ammonia. Several of these discussions are already at the Expression of Interest stage,” he added.
Port Development Pipeline
On port infrastructure, Sonowal said that the government has lined up a robust pipeline of public-private partnership (PPP) projects that will add about 630 million tonnes per annum (mtpa) of capacity.
Currently, over 60% of major port cargo is handled through PPPs. By 2030, capacity is projected to exceed 3,500 mtpa, with PPPs expected to handle 80% of cargo. Seven deep-draft mega ports are also expected to be fully operational by then.
“The entire project pipeline to 2030 represents over ₹1 lakh crore of PPP investments across mechanisation, berth development, and green port initiatives. A large port is also coming up in Bahuda, Odisha, at an estimated investment of ₹21,500 crore,” Sonowal noted.
