New Delhi: In a major boost to India’s maritime industry, Finance Minister Nirmala Sitharaman announced the creation of a ₹25,000 crore Maritime Development Fund while presenting the Union Budget 2025-26 in Parliament. The fund will provide long-term financing for the sector, promote competition, and strengthen maritime infrastructure.
The government will contribute up to 49% of the fund, while the remaining amount will be mobilized from ports and private investors. The initiative aims to enhance shipbuilding, shipbreaking, and port infrastructure, making India a key player in the global maritime economy.
To address cost disadvantages in shipbuilding, the government will revamp the Shipbuilding Financial Assistance Policy, including credit notes for shipbreaking in Indian yards to promote a circular economy.
Additionally, large ships above a certain size will now be included in the Infrastructure Harmonized Master List (HML), allowing them to access financial benefits. Shipbuilding clusters will be developed with advanced infrastructure, skilling programs, and technology to expand the country’s ship manufacturing capabilities.
Recognizing the long gestation period of shipbuilding projects, customs duty exemptions on raw materials, components, and consumables for ship manufacturing and shipbreaking will be extended for another ten years to improve competitiveness.
Highlighting the success of the Regional Connectivity Scheme (UDAN), Sitharaman announced a revamped UDAN scheme to connect 120 new destinations and enable 4 crore passengers to travel over the next 10 years.
The modified UDAN scheme will focus on enhancing connectivity in hilly, aspirational, and North-Eastern districts with support for helipads and smaller airports.
Additionally, the government will invest in air cargo infrastructure to support the transportation of high-value perishable horticulture produce. Cargo screening and customs processes will also be streamlined to improve efficiency and ease of business.
In a significant announcement for Bihar, the Finance Minister revealed plans for new Greenfield airports in the state, along with capacity expansion at Patna airport and a brownfield airport in Bihta.
Additionally, the government will fund the Western Koshi Canal ERM Project, which will benefit farmers cultivating over 50,000 hectares of land in the Mithilanchal region.
The Budget 2025-26 lays out a comprehensive strategy for strengthening maritime trade, improving air connectivity, and boosting infrastructure development. With long-term investments in shipbuilding, aviation, and regional development, the government aims to position India as a global leader in trade and transportation, driving economic growth in the coming years.
Bhubaneswar: Electricity supply has been restored to 39.74 lakh of the 40.91 lakh consumers affected…
Bhubaneswar: Telecom connectivity has been restored in 20 blocks of Ganjam district following disruptions caused…
Bhubaneswar: Around 380 terracotta and pottery artisans from 26 districts of Odisha are showcasing their…
Bhubaneswar: The Odisha Water Resources Department has begun assessing damage to river systems and flood…
Bhubaneswar: In view of the approaching cyclonic storm “Arnab”, four passenger train services have been…
Gajapati: The Gajapati district administration has evacuated 10,200 people from 147 cyclone-vulnerable areas and stepped…
