India’s Shipbuilding Initiatives: Financial Assistance and Development Schemes

India’s Shipbuilding Initiatives: Financial Assistance and Development Schemes

In December 2025, the Ministry of Ports, Shipping & Waterways (MoPSW) announced operational guidelines for two significant shipbuilding initiatives: the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS). These initiatives will have a total budget of Rs 44,700 crore and are designed to enhance India's domestic shipbuilding capacity and global competitiveness.

According to MoPSW, both schemes are valid until March 31, 2036, with a potential extension until 2047.

Key Features of the Initiatives

Here are the essential details regarding these initiatives:

• Notification: Operational guidelines for major shipbuilding initiatives.
• Initiatives: SBFAS and SbDS.
• Budget: Rs 44,700 crore, comprising Rs 24,736 crore for SBFAS and Rs 19,989 crore for SbDS.
• Financial Assistance: 15% to 25% per vessel, depending on the category.
• Significance: Expected to support shipbuilding projects worth approximately Rs 96,000 crore over the next decade.

Guidelines for SBFAS

The SBFAS offers financial assistance with a budgetary allocation of Rs 24,736 crore. The government will provide 15% to 25% per vessel, depending on the classification of the vessel.

It includes:

• Stage-wise Disbursement: Payment linked to milestones.
• National Shipbuilding Mission (NSM): Aims to coordinate planning and execution of shipbuilding efforts.
• Shipbreaking Credit Note: Offers 40% of scrap value as credit to shipowners.
• Independent Valuation: Ensures governance through milestone-based evaluations.

Guidelines for SbDS

The SbDS focuses on long-term capacity building within the domestic shipbuilding sector, with a budget outlay of Rs 19,989 crore.

Key features include:

• Greenfield Shipbuilding Clusters: Development supported by 100% capital funding through a Special Purpose Vehicle.
• Brownfield Shipyards: Eligible for 25% capital assistance for critical infrastructure expansion.
• Credit Risk Coverage Framework: Offers government-supported insurance to enhance financial resilience.

These initiatives aim to increase India's commercial shipbuilding capacity to about 4.5 million gross tonnage annually by 2047, thereby boosting domestic manufacturing and creating numerous job opportunities across the maritime value chain.

Frequently Asked Questions (FAQs)

Q1. What are the main objectives of the shipbuilding initiatives?
Answer: The initiatives aim to enhance India's shipbuilding capacity, improve global competitiveness, and create job opportunities in the maritime sector.

Q2. What is the budget for the Shipbuilding Financial Assistance Scheme?
Answer: The budget for the Shipbuilding Financial Assistance Scheme (SBFAS) is Rs 24,736 crore, aimed at providing financial assistance per vessel.

Q3. How much financial assistance is available under SBFAS?
Answer: Financial assistance under SBFAS ranges from 15% to 25% per vessel, depending on the vessel’s category.

Q4. What is the duration of these shipbuilding initiatives?
Answer: The initiatives are valid until March 31, 2036, with an option for extension up to 2047.

Q5. How will these initiatives impact job creation?
Answer: The initiatives are projected to boost domestic manufacturing and create numerous job opportunities across the maritime value chain, supporting economic growth.