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Context:
The Indian Union Finance Minister, Nirmala Sitharaman, outlined key initiatives along with maritime as well as aviation expansion with a view to improve connectivity, increase shipbuilding, and improve regional infrastructure.
Important Announcements
₹25,000 Crore Maritime Development Fund
- Long-term finance support for the maritime industry.
- Government to contribute up to 49%, with the rest mobilized from ports and private players. Aims to enhance competition and sectoral growth.
Revamp of Shipbuilding Financial Assistance Policy
- Addresses cost disadvantages in shipbuilding.
- Credit Notes for shipbreaking in Indian yards to promote the circular economy.
- Big ships above a specified size to be covered in the HML infrastructure harmonized master list.
Shipbuilding Clusters
- More in terms of infrastructure investments, skilling, and technology.
- Increase in the number of ship categories and capacity.
Tax Benefit of Ship Building & Ship Breaking Extended
- Exemption of the Basic Custom Duty on raw materials, components, and consumables extended for a period of 10 years.
- Similar relaxations for breaking of ships to make the country more competitive.
Scaling up UDAN Regional Connectivity Scheme
- Modified UDAN to connect 120 new destinations.
- Targets 4 crore passengers in the next 10 years.
- Covers helipads and smaller airports in hilly, aspirational, and North-East region districts.
Air Cargo Infrastructure & Warehousing Upgradation
- Infrastructure developments for high-value perishable horticulture.
- Reworked protocols for cargo scanning and customs process for expeditious process.
Infrastructure Support for Bihar
- Greenfield airports to be created in Bihar.
- Up-gradation of the Patna airport and brown field airport at Bihta.
- Financial support towards the Western Koshi Canal ERM Project and 50,000 hectares of farmland affected in the region of Mithilanchal.
Conclusion
The budget emphasizes growth in the maritime and aviation sectors through: Enhancing shipbuilding through financial support and long-term arrangements. Increasing regional air connectivity through a modified UDAN scheme. Enhancing air cargo and warehousing infrastructure. Investment in Bihar’s aviation and agricultural infrastructure.
