The Economic Affairs Cabinet Committe has recently approved of the proposal to provide the financial support of INR 282.25 crores to Indian Maritime University (IMU), Chennai in order to combat the capital expenditure as well as recurring deficit. Established as a Central University, IMU, will all India Jurisdiction, is to create employment opportunities in Maritime sector not only for Indian Shipping but is also to meet the shortage of manpower of the global shipping. It has been reported that the total estimated revenue and expenditure over a period of five years from 2009-10 to 2013-14 of the IMU are INR 449.44 crore and INR 436.04, crore respectively. There is a deficit of INR6.92 crore and the total fund requirement is envisaged to be INR 282.25 crore out of which INR 275.33 crore is as Capital support and INR 6.92 crore to meet the deficit. This will be met through plan support to be provided by the government of India.

The capital support will be utilized for construction of academic block, administrative block and hostel block etc. at the IMU Head Quarters etc. The funds will also be utilized for implementation of reservation of Other Backward Classes (OBC) in the existing Maritime Institutes merged with IMU in compliance of the Central Educational Institutions (Reservation in admissions) Act, 2006.

The main objectives of formation of IMU are to facilitate and promote maritime studies, research and extension work with focus on emerging areas of studies including marine science & technology, marine environment, socio-economic, legal and other related fields, and also to achieve excellence in these and connected fields. The major impact should cover the issues of facilitating quality manpower; service export and Foreign Exchange, research and development and enhance status and image of India as a maritime nation.