Prime Minister Narendra Modi will launch a landmark initiative to revitalise India’s shipbuilding industry on September 20 from Bhavnagar, Gujarat, home to Alang — the world’s largest ship recycling yard. The move is part of India’s ambitious plan to become one of the top five shipbuilding nations by 2047.
The Prime Minister is expected to unveil a comprehensive ₹25,000 crore Maritime Development Fund (MDF), a revamped Ship Building Financial Assistance (SBFA) scheme, infrastructure status for large vessels, and a pioneering ship recycling credit note system designed to boost domestic shipbuilding and recycling, officials said.
According to the Ministry of Ports, Shipping and Waterways, the event will mark a “historic milestone in India’s maritime and shipbuilding sector,” aligning with the Amrit Kaal Vision 2047 to transform the country into a global maritime leader.
Key Announcements Expected
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Maritime Development Fund (₹25,000 crore): To provide long-term, low-cost financing for shipbuilding and related infrastructure.
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Revamped SBFA Scheme: 15% financial support for ships up to ₹100 crore, 20% for specialised vessels over ₹100 crore, and 25% for green ships.
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Infrastructure Status: Ships of 24 metres length or 500 GT capacity and above to qualify, enabling fleet owners easier access to credit.
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Ship Recycling Credit Note Scheme: Fleet owners dismantling ships in India will receive credit notes worth 40% of scrap value, redeemable against the construction of new vessels in Indian shipyards.
Shipbuilding Clusters
Modi is likely to announce a ₹20,000 crore plan for setting up shipbuilding clusters across India, including in Gujarat, Andhra Pradesh (Dugarajapatnam), Odisha (Kendrapara), Tamil Nadu (Thoothukudi), and Maharashtra (Dighi, Jaigad, Vijaydurg, Bankot). These clusters will be developed with participation from both government entities and global private investors.
Global Partnerships
Indian shipyards are also forging international alliances. Cochin Shipyard Ltd has signed MoUs with South Korea’s HD Korea Shipbuilding & Offshore Engineering (KSOE) and Dubai’s Drydocks World, as well as with A.P. Moller-Maersk to explore opportunities in ship repair, maintenance, and green shipbuilding.
Alang and the Recycling Push
With 115 recycling yards at Alang now compliant with the IMO’s Hong Kong Convention, the new credit note scheme is expected to boost India’s green ship recycling business, create jobs, and attract global fleet owners.
The Road Ahead
India currently holds less than 0.06% of the global shipbuilding market, ranked 16th, but aims to break into the top 10 by 2030 and the top five by 2047. According to KPMG, India must expand its shipyard capacity from 0.072 million GT today to 0.33 million GT by 2030, and to 11.31 million GT by 2047.
Industry veteran Antony Prince, CEO of G T R Campbell Marine Consultants, summed up the urgency: “It’s now or never. If India is to catch the shipbuilding boom and meet decarbonisation goals, it must expand capacity on a war footing.”
The Bhavnagar event will also feature foundation stone-laying ceremonies, project inaugurations, and multiple MoU signings, firmly placing India on the global maritime map.
