New Delhi, Dec 27: The Ministry of Ports, Shipping and Waterways (MoPSW) has 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 ₹44,700 crore aimed at strengthening India’s shipbuilding ecosystem and enhancing global competitiveness.
Announcing the move, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the initiatives mark a decisive step towards building a self-reliant and globally competitive maritime sector. “Under the leadership of Prime Minister Narendra Modi, India’s shipbuilding industry is receiving a strong policy push. These guidelines will help revive domestic shipbuilding, create forward and backward linkages, and position India as a major maritime power under the vision of Viksit Bharat and Aatmanirbhar Bharat,” he said.
Under the Shipbuilding Financial Assistance Scheme (SBFAS), which has an outlay of ₹24,736 crore, the government will provide financial assistance ranging from 15 to 25 per cent of the contract value, depending on the category of the vessel. The scheme covers small, large and specialised vessels and includes stage-wise disbursement linked to construction milestones. Additional incentives have been provided for series production of ships.
The scheme also introduces a National Shipbuilding Mission to ensure coordinated planning and implementation across the sector. To promote circular economy practices, a Shipbreaking Credit Note mechanism has been introduced, under which shipowners scrapping vessels at Indian yards will receive credits equivalent to 40 per cent of the scrap value. Independent valuation and monitoring mechanisms have been incorporated to ensure transparency and accountability.
Over the next decade, SBFAS is expected to support shipbuilding projects worth nearly ₹96,000 crore and generate substantial employment across the maritime value chain.
The second component, the Shipbuilding Development Scheme (SbDS), has a budgetary outlay of ₹19,989 crore and focuses on long-term capacity building. It provides for the development of greenfield shipbuilding clusters, modernisation and expansion of existing shipyards, and the establishment of an India Ship Technology Centre under the Indian Maritime University to promote research, innovation and skill development.
Under this scheme, greenfield clusters will receive 100 per cent capital support for common maritime infrastructure through a 50:50 Centre–State special purpose vehicle, while existing shipyards will be eligible for up to 25 per cent capital assistance for brownfield expansion, including dry docks, shiplifts and advanced fabrication facilities. A government-backed Credit Risk Coverage Framework will also support financing by mitigating project risks.
According to the ministry, the combined impact of these initiatives is expected to raise India’s shipbuilding capacity to around 4.5 million gross tonnage per annum by 2047, strengthening the country’s position in the global maritime sector.
Reiterating the government’s vision, Mr. Sonowal said the initiatives would reinforce India’s industrial capabilities, generate large-scale employment and ensure long-term growth of the maritime sector. The guidelines have been officially notified and are available on the Ministry’s website for public reference.
