Government to Allocate ₹70,000 Crore to Revamp Ports and Shipping Sector

August 26, 2025
By: Editorial Team
NEWS

The Centre has proposed a ₹70,000-crore plan to upgrade India’s ports and shipping infrastructure. Of this, ₹20,000 crore will go to the Shipbuilding Financial Assistance Programme (SBFAP) 2.0, and another ₹20,000 crore will be used to develop large maritime hubs under the shipping cluster programme.

Meanwhile, ₹25,000-30,000 crore are for Maritime Development Fund (MDF). The entire proposal was crafted by the finance ministry and the ministry of ports, shipping and waterways (MoPSW). It is 2.8 times the amount allocated for the same during the February Budget 2025.

The plan will be reviewed by the Union Cabinet amidst September. It will first take off in Tamil Nadu, Gujarat, or Odisha, and will later expand to other coastal states including Andhra Pradesh and Maharashtra.

According to the reports, the whole purpose of this shipping cluster programme is to strengthen the country's shipping structure and gain investments. It also aims to create dedicated hubs for shipbuilding, each capable of handling ships that together weigh 1.0–1.2 million tonnes. To make these hubs work, the government will directly fund big infrastructure needs like:

Breakwaters (barriers that protect ports from strong waves),
Dredging (deepening water so large ships can dock),
Main infrastructure (roads, storage, transport facilities), and
Basic utilities (power, water, etc.).

The extended SBFAP 2.0 scheme will continue for 10 more years from April 2026. It will give subsidies to Indian shipyards to reduce their higher costs and help them compete better globally. On the other hand, the Maritime Development Fund, will offer long-term financing for the sector, with money coming from the government, public sector units, Indian and foreign banks, and global agencies.

The Parliament session dated August 12, proved to be a turning point for the maritime sector. It passed four key bills the Merchant Shipping Bill, Coastal Shipping Bill, Carriage of Goods Bill, and Bills of Lading Bill. In addition, the Indian Ports Bill, which replaced the 117-year-old Indian Ports Act, was passed in the Lok Sabha.

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