The Press Information Bureau reports that the Ministry of Ports, Shipping & Waterways has notified operational guidelines for two major shipbuilding initiatives. The move targets stronger domestic capacity and higher global competitiveness.
Structured Framework for Implementation
The government has issued guidelines for the Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme. Together, the schemes carry a total outlay of ₹44,700 crore. Importantly, the framework focuses on transparency, accountability, and structured execution.
Financial Support Under SBFAS
Under the Shipbuilding Financial Assistance Scheme, the government has allocated ₹24,736 crore. The scheme offers financial assistance ranging from 15% to 25% per vessel. The support depends on the vessel category.
In addition, the guidelines introduce graded assistance for small normal, large normal, and specialised vessels. Disbursements follow clearly defined milestones. Security instruments back each stage of funding. The scheme also includes incentives for series orders.
To ensure coordination, the framework establishes a National Shipbuilding Mission. Independent valuation and milestone-based assessments remain mandatory. As a result, the scheme strengthens governance and fund utilisation.
Integration of Ship Recycling Incentives
The guidelines also introduce a Shipbreaking Credit Note mechanism. Under this provision, ship owners scrapping vessels at Indian yards will receive credits equal to 40% of the scrap value.
As a result, the framework links ship recycling with new ship construction. This approach supports circular economy practices within the maritime sector.
Over the next decade, SBFAS is expected to support shipbuilding projects worth about ₹96,000 crore. At the same time, the scheme aims to stimulate manufacturing and employment across the maritime value chain.
Long-Term Capacity Creation Through SbDS
The Shipbuilding Development Scheme carries a budgetary outlay of ₹19,989 crore. The scheme focuses on long-term capacity and capability development.
Under SbDS, the government will support greenfield shipbuilding clusters and modernise existing brownfield shipyards. Greenfield clusters will receive full capital support for common infrastructure. This support will operate through a 50:50 Centre–State special purpose vehicle.
Meanwhile, existing shipyards can access 25% capital assistance for brownfield expansion. Eligible infrastructure includes dry docks, shiplifts, fabrication facilities, and automation systems. Disbursements will follow milestone-based schedules and independent monitoring.
Technology Development and Risk Coverage
The scheme also provides for the establishment of an India Ship Technology Centre under the Indian Maritime University. The centre will support research, design, innovation, and skills development.
In parallel, SbDS introduces a Credit Risk Coverage Framework. The framework offers government-backed insurance for pre-shipment, post-shipment, and vendor-default risks. Consequently, it improves project bankability and financial resilience.
According to the ministry, India’s commercial shipbuilding capacity is projected to reach about 4.5 million gross tonnage per annum by 2047.
Validity and Operational Timeline
Both schemes will remain valid until March 31, 2036. An in-principle extension up to 2047 has also been envisaged. The ministry has formally approved and published the guidelines to enable structured implementation.
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Source: Press Information Bureau
