Budget 2025: Maritime Development Fund of Rs. 25,000 proposed
Policy

Budget 2025: Maritime Development Fund of Rs. 25,000 proposed

The fund will have up to 49 per cent contribution by the Government and the balance will be mobilized from ports and the private sector

  • By ICN Bureau | February 04, 2025

Union Finance Minister Nirmala Sitharaman has proposed to set up a Maritime Development Fund with a corpus of Rs. 25,000 crore for long-term financing for the maritime industry. 

Announcing this in her budget speech in the Parliament, the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman said that this corpus will be for distributed support and promoting competition in the maritime industry. The fund will have up to 49 per cent contribution by the Government, and the balance will be mobilized from ports and the private sector.

The Finance Minister stated that the Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages, which will also include Credit Notes for shipbreaking in Indian yards to promote the circular economy. Further, the large ships above a specified size are also proposed to be included in the infrastructure harmonized master list (HML).

The Union Budget also proposes to facilitate ‘Shipbuilding Clusters’ in order to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem.

Acknowledging that the shipbuilding has a long gestation period, the Finance Minister proposed to continue the exemption of Basic Customs Duty on raw materials, components, consumables or parts for the manufacture of ships for another ten years. She further proposed the same dispensation for ship breaking to make it more competitive.

She also informed the house that the government will facilitate upgradation of infrastructure and warehousing for air cargo including high value perishable horticulture produce. Cargo screening and customs protocols will also be streamlined and made user-friendly.

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