Rs 44,700 Crore Shipbuilding Schemes Notified to Transform India's Maritime Sector
India launches Rs 44,700 crore shipbuilding schemes to boost domestic capacity.
The Government of India has notified comprehensive guidelines for two landmark shipbuilding initiatives with a combined outlay of over ₹44,700 crore, signalling a major push to strengthen domestic maritime manufacturing. Announced by the Ministry of Ports, Shipping and Waterways (MoPSW), the schemes aim to enhance global competitiveness and reduce dependence on foreign shipbuilders.
The first initiative, the Shipbuilding Financial Assistance Scheme (SBFAS), has a total corpus of ₹24,736 crore. Under this scheme, shipbuilders will receive financial assistance ranging from 15 to 25 per cent per vessel, depending on the vessel category. The support is structured through milestone-based, stage-wise disbursement, backed by security instruments to ensure accountability.
The second initiative, the Shipbuilding Development Scheme (SbDS), carries a budgetary outlay of ₹19,989 crore and focuses on long-term capacity and capability creation. It provides 100 per cent capital support for greenfield shipbuilding clusters through a 50:50 Centre–state SPV model. Existing shipyards will be eligible for 25 per cent capital assistance for modernisation and brownfield expansion of critical infrastructure.
Also Read: Bangladesh Says Sharif Osman Hadi Assassination Suspects Fled to India via Meghalaya Border
Union Minister Sarbananda Sonowal said the guidelines establish a stable and transparent framework to revive domestic shipbuilding. The schemes introduce graded incentives for small, large, and specialised vessels, along with additional benefits for series orders. A National Shipbuilding Mission will also be set up to ensure coordinated planning and effective execution across stakeholders.
A key innovation is the introduction of a shipbreaking credit note, under which ship owners scrapping vessels at Indian yards will receive a credit equal to 40 per cent of the scrap value. This credit can be used for new ship construction, linking ship recycling with manufacturing and promoting a circular economy approach within the maritime sector.
Over the next decade, SBFAS alone is expected to support shipbuilding projects worth nearly ₹96,000 crore and generate large-scale employment across the maritime value chain. With investments in modern infrastructure, R&D, and skill development—including an India Ship Technology Centre—India’s commercial shipbuilding capacity is projected to reach 4.5 million gross tonnage per annum by 2047. Both schemes will remain valid until March 31, 2036, with an in-principle extension envisaged up to 2047.
Also Read: PM Modi Leads Chief Secretaries Meet on India's Development Roadmap
