Centre to Triple Maritime Development Fund to ₹70,000 crore
In a significant move to boost the Indian maritime sector, the Centre is set to increase the allocation for the Maritime Development Fund to a whopping ₹70,000 crore, nearly three times the amount announced in the FY26 Budget. This increased funding will be used to support shipbuilding, repairs, shipping tonnage, and port infrastructure, thereby giving a much-needed boost to the industry.
The Maritime Development Fund, which is a key initiative of the Government of India, was established to promote the growth and development of the maritime sector in the country. The fund is designed to attract foreign investment, reduce dependence on foreign vessels, and create jobs in the sector. With the increased allocation, the Centre aims to achieve a significant increase in the country’s share of global shipping tonnage and create new opportunities for Indian shipowners and shipbuilders.
The fund will follow a blended finance model, with 49% of the capital coming from the government, and 51% from commercial capital, global lenders, and sovereign funds. This unique blend of concessional and commercial capital will enable the fund to attract a wider range of investors and provide a higher return on investment.
The increased allocation for the Maritime Development Fund is a significant step in the Centre’s efforts to promote the growth and development of the maritime sector in India. The sector has the potential to create millions of jobs and generate significant revenue for the government. In recent years, the sector has been facing challenges due to factors such as high operational costs, regulatory hurdles, and competition from foreign players.
However, with the increased allocation for the fund, the Centre aims to address these challenges and create a more conducive environment for the growth of the sector. The fund will provide support to shipbuilding and repair yards, shipping companies, and port operators, enabling them to upgrade their infrastructure and equipment.
The increased allocation for the Maritime Development Fund is also expected to attract foreign investment and technology to the sector. The fund will provide a platform for Indian shipowners and shipbuilders to partner with foreign companies and access global capital markets. This will enable them to compete more effectively with foreign players and increase their market share.
The Centre’s decision to increase the allocation for the Maritime Development Fund is also expected to have a positive impact on the country’s trade and commerce. The sector is a critical component of India’s trade infrastructure, and the increased allocation will enable the country to reduce its dependence on foreign vessels and increase its share of global shipping tonnage.
The increased allocation for the Maritime Development Fund is a significant step in the Centre’s efforts to promote the growth and development of the maritime sector in India. The sector has the potential to create millions of jobs and generate significant revenue for the government. With the increased allocation, the Centre aims to create a more conducive environment for the growth of the sector and attract foreign investment and technology.
In conclusion, the Centre’s decision to increase the allocation for the Maritime Development Fund to ₹70,000 crore is a significant step in the promotion of the growth and development of the maritime sector in India. The increased allocation will provide support to shipbuilding and repair yards, shipping companies, and port operators, enabling them to upgrade their infrastructure and equipment. It will also attract foreign investment and technology to the sector, creating new opportunities for Indian shipowners and shipbuilders.
Source: https://www.newsbytesapp.com/news/business/india-to-nearly-triple-maritime-development-fund/tldr
