Centre unveils 2 major initiatives worth Rs 44,700 crore to boost India’s shipbuilding capacity
New Delhi, Dec. 27 – The government announced on Saturday a set of operational rules for two flagship shipbuilding programmes that together amount to ₹44,700 crore. The aim is to boost India’s domestic shipbuilding capacity and enhance its competitiveness on the global stage.
The first programme, the Shipbuilding Financial Assistance Scheme (SBFAS), has a total fund of ₹24,736 crore. Under it the state will provide loans covering 15 % to 25 % of the cost of new vessels, with the exact percentage determined by the vessel type. The scheme is tiered for small, normal‑size and larger specialised ships, and disbursements will be released in phases tied to specific milestones. It also includes incentives for bulk orders, and will be underpinned by security instruments.
Over the next decade, SBFAS is expected to finance shipbuilding projects worth roughly ₹96,000 crore, spur domestic manufacturing, and create jobs throughout the maritime supply chain.
The second initiative, the Shipbuilding Development Scheme (SbDS), has a budget of ₹19,989 crore and focuses on longer‑term capacity building. It targets the construction of new greenfield shipyard clusters and the expansion and upgrading of existing brownfield sites. The scheme also establishes an India Ship Technology Centre under the Indian Maritime University to promote research, design, innovation and skills training.
The guidelines laid out transparent, accountable mechanisms for implementation. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said that Prime Minister Narendra Modi’s leadership had provided the sector with a decisive policy reset. “These guidelines create a stable and transparent framework that will revive domestic shipbuilding, boosting forward and backward linkage of ‘Make in India’, enable large‑scale investment and build world‑class capacity,” he told reporters, adding that India is poised to become a major maritime power on the road to Viksit Bharat and Aatmanirbhar Bharat.
Under SbDS, greenfield clusters will receive 100 % capital support for common maritime and internal infrastructure through a 50:50 Centre–state special purpose vehicle. Existing shipyards will be eligible for 25 % capital assistance for upgrading critical infrastructure such as dry docks, ship lifts, fabrication facilities and automation systems. Payments will be milestone‑based and monitored by independent evaluators. The scheme also offers a Credit Risk Coverage Framework, providing government‑backed insurance for pre‑shipment, post‑shipment and vendor‑default risks to improve project bankability and financial resilience.
According to the ministry, modern infrastructure and a skilled workforce will lift India’s commercial shipbuilding capacity to roughly 4.5 million gross tonnage per year by 2047.
Both SBFAS and SbDS will remain in force until March 31, 2036, with an in‑principle extension possible up to 2047. —IANS
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