With financial backing of Rs 400 billion, the initiative is expected to drive investments worth Rs 12 trillion over the next decade. The government has set a long-term objective of establishing India as a leading shipbuilding nation by 2047, positioning itself as a competitor to China, South Korea, and Japan. To achieve this, collaborations with major shipyards in South Korea and Japan, including Samsung Heavy Industries, HD Hyundai Heavy Industries, and Hanwha Ocean, are being explored.

The second phase of Sagarmala is supported by key policy reforms introduced in the Union Budget for FY26. These include the Rs 250 billion Maritime Development Fund (MDF), a revised shipbuilding subsidy policy, a shipbreaking credit note scheme, and tax incentives for shipbuilding components. The policy framework aims to address infrastructure gaps and enhance the shipbuilding and repair ecosystem in coordination with state governments.

Over the past decade, the Sagarmala Programme has contributed significantly to India’s maritime development. More than 100 port modernization projects, valued at Rs 326 billion, have added 230 million tonne per annum to port capacity. Additionally, 80 port connectivity projects, worth Rs 520 billion, have expanded port-linked infrastructure by 1,500 km. Fishing harbour projects under the Coastal Community Development initiative have positively impacted over 30,000 fishermen. Financial support worth Rs 100 billion has been extended to 119 projects across coastal states and union territories.

Furthermore, the Sagarmala Startup Innovation Initiative has been introduced to promote maritime entrepreneurship. The second phase of the policy will prioritize green shipping, smart ports, maritime logistics, shipbuilding technology, and sustainable coastal development, offering financial assistance, mentorship, and industry collaborations to foster innovative solutions in the sector.

News source: Business Standard