The Government of India has approved a package worth ₹697.25 billion (about $7.86 billion) to rejuvenate the country’s shipbuilding industry and its broader maritime ecosystem.

The four-pillar plan will extend the shipbuilding financial assistance scheme until 2036 with a corpus of $2.8 billion, including a $450 million shipbreaking credit note, as per the government press release on Wednesday.

A $2.8 billion Maritime Development Fund has also been set up, including a $2.2 billion Maritime Investment Fund and a $560 million Interest Incentivisation Fund to lower financing costs.

In addition, the $2.2 billion Shipbuilding Development Scheme will target capacity expansion to 4.5 million GT per year, support mega shipyard clusters, new infrastructure and a Ship Technology Centre under the Indian Maritime University.