Cabinet approves shipbuilding and maritime reforms schemes worth ₹69,725 crore

The union cabinet, at its meeting held on Wednesday, September 24, has approved a ₹69,725 crore plan for the shipbuilding and maritime sector.

Of the allocated sum, ₹24,736 crore has been allocated to shipbuilding financial assistance. The cabinet has also approved the creation of a Maritime Development fund worth ₹25,000 crore, and a Shipbuilding Development Scheme worth ₹19,989 crore.

The shipbuilding and maritime development reforms will be spread across the next 10 years.

Sources had told CNBC Awaaz earlier that three schemes worth nearly ₹70,000 crore could be unveiled for the shipping sector later today.

Under the Shipbuilding Financial Assistance scheme, the allocated sum will be divided into financial assistance, ship-breaking credit note and the National Shipbuilding Mission.

The Maritime Development Fund will be divided under the Maritime Investment Fund and Interest Incentivisation Fund.

Shipping stocks had surged earlier last week when the Ministry of Finance granted "infrastructure status" to large ships, a long-standing demand of India's shipping industry. The announcement was already made during Finance Minister Nirmala Sitharaman's budget on February 1 this year.

Shipping Corporation, over the weekend, also announced that it has signed MoUs with BPCL, Indian Oil and HPCL, India's state-run oil refiners to build and operate fleet together to support the "Atmanirbhar Bharat" vision.