- Proposal for a ₹25,000 crore fund for marine development
- Revised UDAN scheme to connect 120 new destinations and cater to 40 million passengers over the next 10 years
- Greenfield airports and Western Kosi Canal Project for Bihar
Union Finance Minister Nirmala Sitharaman has proposed the creation of a Marine Development Fund with a corpus of ₹25,000 crore to provide long-term support to the maritime industry. The fund aims to strengthen and promote the sector’s competitiveness. In her budget speech in Parliament, the Finance Minister announced that up to 49% of the fund would be contributed by the government, with the remaining amount being raised from ports and private sector investments.
To address rising costs, the Finance Minister stated that the shipbuilding financial assistance policy will be revised. The new policy will include credit notes for shipbreaking (ship dismantling and recycling) at Indian yards, encouraging a circular economy. Additionally, large ships exceeding a specific size will be included in the Infrastructure Harmonized Master List (HML). The Union Budget also proposes shipbuilding clusters to expand ship categories, types, and capacities, while also enhancing infrastructure, expertise, and technology in the sector.
Recognizing that shipbuilding is a long-term process, the Minister announced that basic customs duty exemptions on raw materials, components, and consumables required for shipbuilding would be extended for another 10 years. Similar duty exemptions for shipbreaking have also been proposed to make the sector more competitive.
Boost for Regional Connectivity: Revised UDAN Scheme
Praising the Regional Connectivity Scheme (UDAN), Sitharaman highlighted that it has helped 15 million middle-class travelers fulfill their dream of fast and affordable air travel. The scheme has connected 88 airports and made 619 routes operational.
Building on its success, the government plans to expand regional connectivity to 120 new destinations over the next 10 years, targeting a total of 40 million passengers. The revised UDAN scheme will also support heliports and small airports in hilly regions, aspirational districts, and northeastern states. Additionally, the government will modernize air cargo infrastructure and warehousing facilities to support the transportation of perishable goods like fruits and vegetables. Cargo screening and customs protocols will also be made more efficient and user-friendly.
Infrastructure Push for Bihar: Airports and Western Kosi Canal Project
The Finance Minister announced new greenfield airports in Bihar to meet the state’s future needs. This is in addition to the expansion of the Patna Airport and Brownfield Airport in Bihta.The budget also allocates financial support for the Western Kosi Canal E.R.M. Project, which will benefit thousands of farmers cultivating over 50,000 hectares of land in the Mithilanchal region of Bihar.
