Maharashtra Approves Shipbuilding Policy to Boost Maritime Infrastructure
The Maharashtra government has approved a new shipbuilding policy aimed at developing maritime infrastructure and promoting ship repair and recycling activities. The policy is expected to attract new projects, generate employment, and boost the state's economic growth.
MaharashtraShipbuildingMaritime InfrastructureShip RepairShip RecyclingReal Estate MaharashtraMay 17, 2025
The decision is expected to boost the shipbuilding, repair, and recycling industries and attract new projects. The move will 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. Maharashtra's strategic location on India's west coast presents a substantial opportunity for the construction of new vessels, maintenance of existing ships, and organised recycling of decommissioned ships.
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.
To achieve this, the state aims to encourage small and medium enterprises, create jobs, promote innovation through R&D investments, and enable collaboration. 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.
Private sector participation will be encouraged under all three models. These projects will enable the construction and repair of Indian vessels, enhancing the country's presence in maritime transport and reducing foreign exchange outflow, the GR stated. 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.
Developers or private entities setting up skill development facilities for shipbuilding, repair, or recycling will receive 60 per cent of the project cost or Rs 5 crore, whichever is lower, the GR stated. Apart from this, an annual financial aid of 50 per cent 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 up to 60 per cent of the facility cost or Rs 5 crore, whichever is lower, for developers or private institutions setting up shipbuilding, repair, or recycling facilities, it was stated.
Frequently Asked Questions
What is the Maharashtra Shipbuilding, Ship Repair, and Ship Recycling Facility Development Policy 2025?
The Maharashtra Shipbuilding, Ship Repair, and Ship Recycling Facility Development Policy 2025 is a new policy approved by the Maharashtra government to develop the state's maritime infrastructure, promote ship repair and recycling activities, and boost the shipbuilding industry.
How will the policy help the central government?
The policy will help the central government earn valuable foreign exchange by enhancing the country's presence in maritime transport and reducing foreign exchange outflow through the construction and repair of Indian vessels.
What are the three development models outlined in the policy?
The three development models outlined in the policy are maritime shipyard clusters, standalone shipyards, and developing shipyard projects at ports. These models aim to promote industry growth, efficiency, and specialised services.
What financial incentives are provided to private entrepreneurs under the policy?
Private entrepreneurs will receive capital subsidies of 15 per cent of the project cost, disbursed in four equal instalments during the construction phase. Developers or private entities setting up skill development facilities will receive 60 per cent of the project cost or Rs 5 crore, whichever is lower, and an annual financial aid of 50 per cent of the incurred cost or Rs 1 crore, whichever is lower, for employee skill development or upskilling.
What is the goal of the Maharashtra government in the maritime sector?
The goal of the Maharashtra government in the maritime sector is to develop foundational infrastructure, generate employment opportunities, increase cargo handling capacity, and attract investments in the port sector. The state aims to achieve a one-third share of the national effort in shipbuilding, repair, and recycling as outlined in the Central government's Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.
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