Shipbuilding Development Scheme (SDS) approved with ₹19,989 crore outlay

Key facts

• The Union Cabinet approved the ₹19,989 crore Shipbuilding Development Scheme (SDS) to create 3-4 greenfield shipbuilding clusters, one per state.
• An equal joint venture between V O Chidambaram Port Authority and State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) formed the first Special Purpose Vehicle (SPV) named National Shipbuilding & Heavy Industries Park, Tamil Nadu (NSHIP, TN).
• The SPV will develop a mega shipbuilding cluster at Thoothukudi on 2,000 acres with a 2 km waterfront, including 1,000 acres for shipyards and 1,000 acres for ancillary industries and common facilities.
• Each cluster will target 1.2 million GT annual capacity, with at least one anchor yard of 0.5 million GT to be achieved within 10 years of commissioning.
• The scheme provides 100 per cent capital grant for eligible components of approved greenfield clusters.