Budget may allocate ₹9,800 crore as Centre's contribution for Maritime Development Fund
Subscribe to enjoy similar stories. The government is set to operationalise the ₹25,000 crore Maritime Development Fund (MDF) by allocating ₹9,800 crore to it in the upcoming budget. The fund aims to lower capital costs and attract long-term, low-cost investment into shipyards, coastal infrastructure, and inland waterways.
The Maritime Development Fund aims to mobilise investment worth ₹1.5 trillion in the shipping sector by 2030, which will play a key role in making India one of the top five shipbuilding and ship-owning nations in the world by 2047, from its current position as the sixteenth. The ₹25,000 crore MDF was announced by finance minister Nirmala Sitharaman while presenting the budget proposals for 2025-26. The cabinet approved it in September, along with a ₹70,000 crore package for the shipbuilding and maritime sectors.
The fund will take off now, with funds actually allocated through the budget. Queries mailed to the ministries of finance and ports, shipping and waterways (MoPSW) remained unanswered till press time. “The long-term financing through MDF will allow Indian shipowners access to long-term capital to purchase ships, modernise fleets, and build port-ready logistics infrastructure," said Pushpank Kaushik, chief executive officer (CEO) and head of business development (Subcontinent, Middle East and Southeast Asia) at Jassper Shipping, a Hyderabad-based global shipping and logistics firm.
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