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.
Related News Articles
Rustomjee Group Unveils Luxurious Residential Project in Matunga West, Mumbai
Rustomjee Group launches Rustomjee 180 Bayview, a premium residential project offering luxurious living experiences in Matunga West, Mumbai.
Indian Real Estate Market Sees Unprecedented Growth in Q2 2024
The Indian real estate market witnessed a significant surge in deals worth $1.56 billion during the April-June period, marking an eight-fold rise from the preceding quarter.
Real Estate Sector Sees Encouraging Outlook Despite Legacy Challenges
The Economic Survey highlights India's real estate sector's recovery, driven by urbanization and government schemes, but notes that legacy stalled projects pose a challenge.
Budget 2024: Realty Sector Takes a Hit, What's Next?
The recent Union Budget 2024 has brought significant changes to the realty sector, including the withdrawal of indexation benefits and a cut in long-term capital gains tax. What does this mean for investors and the sector as a whole?
Luxury Living in Mumbai: ₹172 Crore Apartment Sold at Iconic Pali Hill Address
Apco Infratech Pvt Ltd purchases a triplex apartment at 'The Legend by Ashar' project in Pali Hill, Bandra for a record-breaking ₹172 Crore, setting a new benchmark in Mumbai's real estate market.
Year-End 2024: Residential Transactions Surpass 5.7 Lakh Mark, Property Prices Soar 60% in 5 Years
Hyderabad's real estate market continued its upward trajectory, achieving 80% of Bengaluru's volume and solidifying its position as a key real estate hub. The Indian residential sector saw a boost in transactions and property values in 2024.