The government has notified detailed guidelines for two major shipbuilding initiatives with a combined outlay of over Rs 44,700 crore, aimed at strengthening India’s domestic shipbuilding ecosystem and enhancing global competitiveness.The Ministry of Ports, Shipping and Waterways (MoPSW) said the two schemes — the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS) — are designed to revive domestic shipbuilding, deepen industrial linkages and create long-term capacity, PTI reported.Under SBFAS, which has a total corpus of Rs 24,736 crore, the government will provide financial assistance ranging from 15 per cent to 25 per cent per vessel, depending on the 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 have also been built in.The SbDS, with a budgetary outlay of Rs 19,989 crore, focuses on long-term capacity and capability creation across the shipbuilding value chain. According to the official statement, the scheme provides for the development of greenfield shipbuilding clusters, expansion and modernisation of existing brownfield shipyards, and the setting up of an India Ship Technology Centre under the Indian Maritime University to support research, design, innovation and skills development.Union minister for ports, shipping and waterways Sarbananda Sonowal said the guidelines create a stable and transparent framework to revive domestic shipbuilding and strengthen both forward and backward linkages, the statement said.The schemes also provide for the establishment of a National Shipbuilding Mission to ensure coordinated planning and execution of shipbuilding initiatives. In addition, a shipbreaking credit note has been introduced, under which ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40 per cent of the scrap value, linking ship recycling with new ship construction and supporting a circular economy approach.To strengthen governance and ensure efficient use of public funds, independent valuation and milestone-based assessments have been made mandatory, the ministry said.Over the next decade, SBFAS is expected to support shipbuilding projects worth about Rs 96,000 crore, stimulate domestic manufacturing and generate employment across the maritime value chain.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. 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.With the creation of modern infrastructure and a skilled workforce, commercial shipbuilding capacity is projected to rise to about 4.5 million gross tonnage per annum by 2047, according to the statement.Both SBFAS and SbDS will remain valid until March 31, 2036, with an in-principle extension envisaged up to 2047, the statement noted. Together, the schemes are expected to generate employment, promote indigenous technology development and strengthen India’s maritime security and economic resilience.
