Maharashtra bets big on shipyards and repairs with new shipbuilding policy

In a bid to develop Maharashtra's maritime infrastructure and promote ship repair and recycling activities, the state government approved a shipbuilding policy.

The Maharashtra Shipbuilding, Ship Repair, and Ship Recycling Facility Development Policy 2025 was approved in the last cabinet meeting, and a Government Resolution (GR) was issued on Friday, an official told news agency PTI.

The move is expected to boost the shipbuilding, repair, and recycling industries, attract new projects and also help the central government earn valuable foreign exchange.

Recognising the significant importance of the maritime sector in driving economic and industrial growth, the state has identified the need to develop foundational infrastructure in this domain.

While the government has the Maharashtra Maritime Development Policy 2023 to regulate and develop small ports along the state's coastline, the new policy now has provisions specifically for shipbuilding, repair, and recycling.

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According to the GR, the state aims to encourage private sector participation in building the necessary infrastructure. The initiative will also help generate new employment opportunities, as there is a need to develop a skilled workforce at various levels, increase cargo handling capacity, and attract investments in the port sector.

The Central government's ambitious programmes Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 have outlined goals for shipbuilding, repair, and recycling, with Maharashtra targeting a one-third share of the national effort. The state intends to encourage small and medium enterprises, create jobs, promote innovation through R&D investments, and enable collaboration to achieve this.

The new policy outlines three development models, including maritime shipyard clusters, under which clusters of shipyards will be built to promote industry growth and efficiency, standalone shipyards to encourage individual shipyards to operate and provide specialised services, and developing shipyard projects at ports.

As per the policy, private entrepreneurs will receive capital subsidies of 15 per cent of the project cost, and it will be disbursed in four equal instalments during the construction phase, each after 25 per cent of the work is completed and the final instalment once commercial operations commence.

—With PTI inputs

Maritime