The government is set to expand the proposed Maritime Development Fund (MDF) to Rs 70,000 crore, 2.8 times the allocation announced in the February Budget, to accelerate growth in shipbuilding, ship repair, port-linked infrastructure and shipping tonnage, ET reported, citing multiple sources. The Expenditure Finance Committee (EFC), led by the finance ministry’s expenditure secretary, has already cleared the proposal, with Cabinet approval expected soon.According to ET, the MDF will adopt a blended finance model, with 49% concessional capital from the government, including contributions from state-owned major ports, and 51% commercial capital from multilateral and bilateral lenders, as well as sovereign funds. It will offer long-term, low-cost financing to support the sector, using instruments with varying returns and terms to cater to diverse investors.A government document estimates India’s maritime sector will need $885–940 billion in investment by 2047, including $388 billion for shipping tonnage, $260 billion for green vessels, $224 billion for next-generation ports, and $18 billion to become a global shipbuilding and repair hub.The monsoon session of Parliament, which ended on 12 August, marked a “watershed moment” for the sector, passing four major bills, the Merchant Shipping Bill, Coastal Shipping Bill, Carriage of Goods Bill, and Bills of Lading Bill, while the Indian Ports Bill cleared the Lok Sabha, replacing the 117-year-old Indian Ports Act. “It’s a landmark event,” ports secretary TK Ramachandran said, noting the transformation underway in the sector.The EFC has also approved a revamped Ship Building Financial Assistance scheme, incentives for shipbreaking in Indian yards, development of shipbuilding clusters, and infrastructure status for large vessels. Subsidies are proposed at 15% for standard ships up to Rs 100 crore, 20% for advanced vessels over Rs 100 crore, and 25% for green ships.India aims to break into the global top 10 in shipbuilding by 2030 and top 5 by 2047, competing with leaders like China, South Korea, and Japan. “India does not have the luxury to procrastinate,” said Antony Prince, CEO of G T R Campbell Marine Consultants Ltd. Dr Ranjan Varghese of Steel Ships added that the country must “build up infrastructure, expand shipbuilding capacity and shake up its banking industry” to meet Prime Minister Narendra Modi’s ambitious targets.