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The Ministry of Ports, Shipping and Waterways (MOPSW) has notified the operational guidelines for Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SBDS) with a combined outlay of ₹44,700 crore to strengthen India’s domestic shipbuilding capacity and global competitiveness.
Union Minister of Ports, Shipping and Waterways (MOPSW), Sarbananda Sonowal said, “These guidelines create a stable and transparent framework that will revive domestic shipbuilding, promote forward and backward linkages to the ‘Make in India’ initiative, enable large-scale investment and build world-class capacity, thereby positioning India as a leading maritime nation on the path to a developed India and self-reliant India.”
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Under SBFAS, the total corpus of which is ₹24,736 crore, the government will provide financial assistance ranging from 15% to 25% per ship depending on the ship category. The scheme provides graded support to small normal, large normal and special vessels, with phase-wise disbursement linked to defined milestones and backed by safety instruments. Incentives for series orders have also been included.
The scheme provides for the establishment of a National Shipbuilding Mission to ensure coordinated planning and implementation of shipbuilding initiatives. It also introduces a shipbreaking credit note, under which shipowners scrapping ships in Indian yards will get a credit equal to 40% of the scrap value, linking ship recycling with new shipbuilding. Independent evaluation and milestone-based evaluation have been made mandatory to strengthen governance and ensure efficient use of public funds.
Over the next decade, SBFAS is expected to support shipbuilding projects worth approximately ₹96,000 crore, encourage domestic manufacturing and generate employment across the maritime value chain.
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Shipbuilding Development Scheme (SBDS), with a budgetary outlay of ₹19,989 crore, focuses on long-term capability and capacity building. It provides for the development of greenfield shipbuilding clusters, expansion and modernization of existing brownfield shipyards and establishment of an India Ship Technology Center under the Indian Maritime University to support research, design, innovation and skill development.
Under SBDS, greenfield shipbuilding clusters will receive 100% capital support for common maritime and inland infrastructure through a 50:50 Centre-State special purpose vehicle. Existing shipyards will be eligible for 25% capital assistance for brownfield expansion of critical infrastructure such as dry dock, shiplift, fabrication facilities and automation systems. Disbursement will be based on milestones and monitored by independent evaluation agencies.
The scheme also includes a credit risk coverage framework, offering government-backed insurance for pre-shipment, post-shipment and vendor-default risks to improve project bankability and financial flexibility.
According to the ministry, with the creation of modern infrastructure and skilled workforce, India’s commercial shipbuilding capacity is projected to grow to about 4.5 million gross tonnes per annum by 2047.
Both SBFAS and SBDS will remain valid till March 31, 2036, with an in-principle extension up to 2047 envisaged.