The Centre is significantly scaling up its proposed Maritime Development Fund (MDF) to ₹70,000 crore, 2.8 times the allocation announced in the February Budget, to boost shipbuilding, ship repair, ancillary industries, expansion of shipping tonnage, and port-linked infrastructure, according to a report by The Economic Times.
The revised corpus has reportedly already secured clearance from the expenditure finance committee (EFC), chaired by the finance ministry’s expenditure secretary, with Cabinet approval expected shortly.
MDF blended finance model
The MDF will operate on a blended finance model: 49 per cent concessional capital from the government, including contributions from state-owned major ports, and 51 per cent commercial capital from multilateral and bilateral lenders as well as sovereign funds.
Government estimates peg India’s maritime sector investment requirement between $885 billion and $940 billion by 2047, The Economic Times report said. This includes:
- $388 billion to expand shipping tonnage
- $260 billion for green vessels
- $224 billion for next-generation ports
- $18 billion to position India as a global shipbuilding and repair hub
- $8.82 billion to raise coastal and inland shipping’s share
- $1.65 billion to boost cruise tourism
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