New Delhi: Union Finance Minister Nirmala Sitharaman.
Credit: PTI
Union Finance Minister Nirmala Sitharaman on Saturday said a Maritime Development Fund with a corpus of Rs 25,000 crore will be set up for long-term financing for the maritime industry.
Presenting the Union Budget for 2025-26, Sitharaman said the amount will be used to support and promote competition. This will have up to 49 per cent contribution by the government, while the balance will be mobilised from ports and the private sector.
She also announced continuation of customs duty exemption on inputs and components used for manufacturing of ships for another 10 years.
The announcements assume significance as the country is looking to promote domestic ship building to boost international trade.
Sitharaman also said the Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages.
This will also include credit notes for shipbreaking in Indian yards to promote the circular economy, she added.
The minister also said large ships above a specified size will be included in the infrastructure harmonised master list (HML).
"Shipbuilding clusters will be facilitated to increase the range, categories and capacity of ships," she said, adding that this will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem.
Pointing out that presently the tonnage tax scheme is available to only sea going ships, the minister said the benefits of existing tonnage tax scheme are proposed to be extended to inland vessels registered under the Indian Vessels Act, 2021 to promote inland water transport in the country.
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, is presenting her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.