The government on Saturday announced a comprehensive revamp of its financial assistance policy, anchored by the creation of a Maritime Development Fund with a substantial corpus of Rs 25,000 crore. Under this initiative, the government will contribute 49% to the fund, aiming to enhance the competitiveness and capacity of India’s shipbuilding sector.
“This initiative is expected to significantly benefit leading shipbuilding companies such as Mazagon Dock Shipbuilders (Mazdock), Cochin Shipyard Limited (CSL), and Garden Reach Shipbuilders & Engineers (GRSE) by providing much-needed financial support for expansion, modernization, and innovation,” Oneeka Medh, Research Analyst at Samco Securities said.
According to him the ownership, leasing, and flagging regulations will be revised to boost India’s global shipping market share and generate employment. To further support shipbuilding, customs duties on vessel components, consumables, technical documentation, and warship spare parts have been eliminated.
This initiative will drive industrial growth, improve maritime trade, and position India as a global shipbuilding hub, he said, while seeing Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE), and Cochin Shipyard as the key beneficiaries.
“Our economy is the fastest-growing among all major global economies. Our development track record of the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period. We see the next five years as a unique opportunity to realize ‘Sabka Vikas’, stimulating balanced growth of all regions,” Sitharaman said in her budget speech.