The government of Maharashtra gave the green light to a shipbuilding policy to enhance the state’s maritime infrastructure and promote ship repair and recycling activities, a government official confirmed on Saturday, according to PTI. The Maharashtra Shipbuilding, Ship Repair, and Ship Recycling Facility Development Policy 2025 received approval during the last cabinet meeting, and a Government Resolution (GR) was issued on Friday.
This decision is anticipated to provide a boost to the shipbuilding, repair, and recycling sectors, attracting new projects and aiding the central government in earning valuable foreign exchange. Recognizing the crucial role of the maritime sector in propelling economic and industrial growth, the state has identified the necessity to establish foundational infrastructure in this field.
Although the Maharashtra Maritime Development Policy 2023 is in place to regulate and develop small ports along the state’s coastline, the newly approved policy now includes provisions specifically tailored for shipbuilding, repair, and recycling. Maharashtra’s advantageous location on India’s west coast offers a significant opportunity for the construction of new vessels, maintenance of existing ships, and the organized recycling of decommissioned ships.
The state aims to encourage private sector involvement in constructing the required infrastructure to achieve these goals. The initiative is also expected to create new job opportunities, necessitating the development of a skilled workforce at various levels, an increase in cargo handling capacity, and the attraction of investments in the port sector.
The Central government’s ambitious programs, Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, have laid out objectives for shipbuilding, repair, and recycling, with Maharashtra aiming for a one-third share of the national effort. To realize this objective, the state plans to promote small and medium enterprises, generate employment, foster innovation through research and development investments, and facilitate collaboration.
The newly approved policy outlines three development models, including maritime shipyard clusters, standalone shipyards, and shipyard projects at ports, with the goal of promoting industry growth and efficiency. Private sector participation will be encouraged across all three models to enable the construction and repair of Indian vessels, bolstering the country’s presence in maritime transport and reducing foreign exchange outflow.
Private entrepreneurs will receive capital subsidies of 15 percent of the project cost, disbursed in four equal installments during the construction phase, with the final installment upon the commencement of commercial operations. Developers or private entities establishing skill development facilities for shipbuilding, repair, or recycling will receive financial assistance of up to 60 percent of the project cost or Rs 5 crore, whichever is lower.
Moreover, an annual financial aid of 50 percent of the incurred cost or Rs 1 crore, whichever is lower, will be provided for employee skill development or upskilling. The state has also approved capital assistance of up to 60 percent of the facility cost or Rs 5 crore, whichever is lower, for developers or private institutions setting up shipbuilding, repair, or recycling facilities.
The approval of the shipbuilding policy marks a significant step towards enhancing Maharashtra’s maritime infrastructure and fostering economic growth in the state. With the implementation of these initiatives, Maharashtra is set to play a crucial role in the development of the shipbuilding, repair, and recycling sectors, contributing to the overall growth of the maritime industry in India.
