Maharashtra Government Approves Shipbuilding, Repair and Recycling Policy 2025

This strategic policy is expected to give a major push to the shipbuilding, ship repair, and ship recycling industries in the state. It also aims to attract new projects and generate valuable foreign exchange for the Central Government.

Recognizing the maritime sector’s critical role in the economic and industrial development of Maharashtra, the state has prioritized the creation of infrastructure to support and expand this vital industry. The newly approved policy outlines a three-pronged development model:

• Marine Shipyard Clusters

• Single Shipyards

• Shipyard Projects within Existing and Upcoming Ports

These initiatives are designed to facilitate the construction and repair of Indian ships, thereby strengthening the domestic shipping industry and enhancing the role of Indian vessels in cargo and water transport.

Capital Incentives for Private Sector Participation

One of the key highlights of the policy is its emphasis on encouraging private sector investment. The government has announced capital assistance of up to 60% of the facility cost or ₹5 crore (whichever is lower) for eligible developers in shipbuilding, repair, or recycling. This incentive will be available to both individual developers and private organizations interested in establishing such facilities.

The policy was formally approved during the recent cabinet meeting of the MahaYuti (Grand Alliance) government, reflecting the administration's focus on transforming Maharashtra into a hub for maritime infrastructure and industry.

With this forward-looking initiative, the Maharashtra government seeks to revitalize the shipbuilding ecosystem, support sustainability through organized recycling infrastructure, and contribute to India’s long-term goals of becoming self-reliant in maritime capabilities.

Further implementation details and project rollouts are expected to follow in the coming weeks.