The Indian government is set to provide more than Rs 200 billion financial support to promote domestic shipping and meet the increasing demand. This plan encompasses the second phase of the Shipbuilding Financial Assistance Policy and the development of four greenfield shipbuilding and repair hubs over the next six years. Identified locations for these hubs include Kendrapara in Odisha, Dugarajapatnam in Andhra Pradesh, Kandla in Gujarat, and Tuticorin in Tamil Nadu, each spanning 2,000-3,000 acres.
The initiative responds to an anticipated demand for approximately 112 ships, valued at Rs 857 billion over the next five years, while current domestic shipyards can produce only 28 such vessels.
The government also plans to issue tenders for 10 medium-range tankers in May 2025 to address immediate needs.