The Expenditure Finance Committee (EFC) of government has approved the proposal to set up the Maritime Development Fund with a total outlay of Rs 250 billion. The fund, first announced in the union budget of FY 2025-26, will provide long-term, low-cost financing to domestic shipbuilders, port operators, and logistics firms. The central government will contribute up to 49 per cent of the fund, while the remaining 51 per cent is expected from private investors, including port operators and financial institutions. The proposal will soon be presented to the union cabinet for final approval, with funding expected to begin by the second quarter of FY 2025-26.
The EFC has reviewed the revamped Ship Building Financial Assistance Policy. This will also include credit notes for shipbreaking in Indian yards to promote the circular economy. Further, large ships above a specified size will be granted infrastructure status which will help them to access long-term, low-cost financing.