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Centre Notifies Rs 447 Bn Shipbuilding Support Guidelines
PORTS & SHIPPING

Centre Notifies Rs 447 Bn Shipbuilding Support Guidelines

The Centre has recently notified the operational guidelines for two major shipbuilding initiatives—the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS)—with a combined outlay of Rs 447 billion to strengthen India’s domestic shipbuilding capacity and global competitiveness. The guidelines, issued by the Ministry of Ports, Shipping and Waterways, establish a transparent and accountable framework for implementation.

Speaking on the occasion, Union Minister Sarbananda Sonowal said the initiatives mark a decisive policy reset for India’s shipbuilding sector, enabling large-scale investment, strengthening Make in India linkages and positioning the country as a major maritime nation under the Viksit Bharat and Atmanirbhar Bharat vision.

Under SBFAS, with a corpus of Rs 247.36 billion, the government will provide financial assistance of 15–25 per cent per vessel, depending on category. The scheme covers small, large and specialised vessels, with milestone-linked disbursements, incentives for series orders and mandatory independent valuation. It also provides for a National Shipbuilding Mission and introduces a Shipbreaking Credit Note, offering shipowners 40 per cent of scrap value as credit when vessels are recycled at Indian yards.

Over the next decade, SBFAS is expected to support shipbuilding projects worth around Rs 960 billion, stimulating domestic manufacturing and employment across the maritime value chain.

The SbDS, with a budgetary outlay of Rs 199.89 billion, focuses on long-term capacity creation through greenfield shipbuilding clusters, modernisation of existing shipyards and the establishment of an India Ship Technology Centre at the Indian Maritime University. The scheme also includes a Credit Risk Coverage Framework to improve project bankability.

According to the ministry, these measures are expected to raise India’s commercial shipbuilding capacity to about 4.5 million gross tonnage per annum by 2047, strengthening maritime security, employment and economic resilience.

The Centre has recently notified the operational guidelines for two major shipbuilding initiatives—the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS)—with a combined outlay of Rs 447 billion to strengthen India’s domestic shipbuilding capacity and global competitiveness. The guidelines, issued by the Ministry of Ports, Shipping and Waterways, establish a transparent and accountable framework for implementation. Speaking on the occasion, Union Minister Sarbananda Sonowal said the initiatives mark a decisive policy reset for India’s shipbuilding sector, enabling large-scale investment, strengthening Make in India linkages and positioning the country as a major maritime nation under the Viksit Bharat and Atmanirbhar Bharat vision. Under SBFAS, with a corpus of Rs 247.36 billion, the government will provide financial assistance of 15–25 per cent per vessel, depending on category. The scheme covers small, large and specialised vessels, with milestone-linked disbursements, incentives for series orders and mandatory independent valuation. It also provides for a National Shipbuilding Mission and introduces a Shipbreaking Credit Note, offering shipowners 40 per cent of scrap value as credit when vessels are recycled at Indian yards. Over the next decade, SBFAS is expected to support shipbuilding projects worth around Rs 960 billion, stimulating domestic manufacturing and employment across the maritime value chain. The SbDS, with a budgetary outlay of Rs 199.89 billion, focuses on long-term capacity creation through greenfield shipbuilding clusters, modernisation of existing shipyards and the establishment of an India Ship Technology Centre at the Indian Maritime University. The scheme also includes a Credit Risk Coverage Framework to improve project bankability. According to the ministry, these measures are expected to raise India’s commercial shipbuilding capacity to about 4.5 million gross tonnage per annum by 2047, strengthening maritime security, employment and economic resilience.

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