Centre notifies guidelines for two shipbuilding initiatives with an outlay of ₹44,700 crore
The scheme also includes a Credit Risk Coverage Framework, offering government-backed insurance for pre-shipment, post-shipment and vendor-default risks to improve project bankability and financial resilience.
In a further boost to the shipbuilding capacity, the Centre on Saturday notified guidelines for two shipbuilding initiatives with an outlay of ₹44,700 crore.
The Ministry of Ports, Shipping & Waterways (MoPSW) notified the operational guidelines for Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS) to strengthen India’s shipbuilding capacity and improve global competitiveness. The approved guidelines lay down a transparent and accountable framework for implementation.
This comes after the Union Cabinet on September 25 approved a comprehensive package of ₹69,725 crore to revitalise India’s shipbuilding and maritime ecosystem.
New guidelines
Union Shipping Minister Sarbananda Sonowal said that the new guidelines will create a stable and transparent framework that will revive domestic shipbuilding, boosting forward and backward linkage amping ‘Make in India’ initiative, enable large-scale investment and build world-class capacity, positioning India as a major maritime nation on the path to Viksit Bharat and Aatmanirbhar Bharat.”
Under SBFAS, which has a total corpus of ₹24,736 crore, the government will provide financial assistance ranging from 15 per cent to 25 per cent per vessel, depending on the vessel category. The scheme introduces graded support for small normal, large normal and specialised vessels, with stage-wise disbursement linked to defined milestones and backed by security instruments. Incentives for series orders are also included.
Over the next decade, SBFAS is expected to support shipbuilding projects worth about ₹96,000 crore, stimulate domestic manufacturing and generate employment across the maritime value chain, says a release.
The SbDS, with a budgetary outlay of ₹19,989 crore, focuses on long-term capacity and capability creation. The scheme provides for the development of greenfield shipbuilding clusters, expansion and modernisation of existing brownfield shipyards, and the establishment of an India Ship Technology Centre under the Indian Maritime University to support research, design, innovation and skills development.
Under SbDS, greenfield shipbuilding clusters will receive 100 per cent capital support for common maritime and internal infrastructure through a 50:50 Centre–State special purpose vehicle, while existing shipyards will be eligible for 25 per cent capital assistance for brownfield expansion of critical infrastructure such as dry docks, shiplifts, fabrication facilities and automation systems. Disbursements will be milestone-based and monitored by independent evaluation agencies.
The scheme also includes a Credit Risk Coverage Framework, offering government-backed insurance for pre-shipment, post-shipment and vendor-default risks to improve project bankability and financial resilience.
With the creation of modern infrastructure and a skilled workforce, India’s commercial shipbuilding capacity is projected to rise to about 4.5 million gross tonnage per annum by 2047, according to the ministry.
Both SBFAS and SbDS will remain valid until March 31, 2036, with an in-principle extension envisaged up to 2047. Together, the schemes are expected to generate employment, promote indigenous technology development and strengthen India’s maritime security and economic resilience, says the release.
Published on December 28, 2025
