The Indian Cabinet is expected to consider three major schemes worth US$7.89 billion aimed at strengthening domestic shipping and shipbuilding under the Atmanirbhar Bharat initiative, reported Mumbai's Money Control.

CNBC Awaaz cited sources saying the schemes include a INR200 billion (US$2.25 billion) shipbuilding fund, and a INR250 billion Maritime Development Fund (MDF). The MDF will be backed 49 per cent by the government, with the remainder from port authorities, PSUs, financial institutions and private players.

The schemes will offer incentives, interest subsidies and long-term finance to support shipbuilding, ship-breaking and port-linked infrastructure. Cochin Shipyard (CSL) signed a collaboration agreement on September 23 with HD Korea Shipbuilding & Offshore Engineering and is considering a INR150,000 shipyard in Tamil Nadu, expected to create 10,000 jobs.

Shipping shares including SCI, GRSE and Mazagon Dock surged in anticipation of the Cabinet's decision. The government has also granted infrastructure status to "large ships" under the transport and logistics category, as per a finance ministry notification dated September 19.

Minister of State for Ports and Shipping Shantanu Thakur said India aims to capture five per cent of the global shipbuilding market by 2030. He outlined plans for 10 world-class shipyards supported by public-private partnerships and international collaborations, with a focus on automation, digital twin technology and green shipbuilding.