New Delhi: The Ministry of Ports, Shipping & Waterways (MoPSW) has notified the Guidelines for Shipbuilding Assistance, outlining the operational framework for two major initiatives – the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS).
With a combined outlay of ₹44,700 crore, the guidelines aim to strengthen India’s domestic shipbuilding ecosystem, enhance global competitiveness, and ensure transparent and accountable implementation of government support.
The notified Guidelines for Shipbuilding Assistance establish a structured mechanism for financial aid, capacity creation, and long-term capability development in the shipbuilding sector.
These guidelines are designed to revive domestic shipyards, encourage large-scale investments, strengthen forward and backward linkages under the Make in India initiative, and position India as a major maritime nation.
Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal said that the guidelines provide a stable and transparent policy framework to rejuvenate India’s shipbuilding industry, enable world-class infrastructure, and align the sector with the national vision of Viksit Bharat and Aatmanirbhar Bharat.
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Guidelines for Shipbuilding Assistance Define Support Under SBFAS
Under the Guidelines for Shipbuilding Assistance, the Shipbuilding Financial Assistance Scheme (SBFAS) has been allocated a total corpus of ₹24,736 crore.
The scheme provides financial assistance ranging from 15% to 25% of the contract value per vessel, depending on the vessel category.
Graded support has been introduced for small normal, large normal, and specialised vessels.
The guidelines also specify stage-wise disbursement linked to defined construction milestones and backed by appropriate security instruments.
Incentives for series orders have been included to promote economies of scale and sustained order books for Indian shipyards.
As part of the framework, a National Shipbuilding Mission will be established to ensure coordinated planning and effective execution of shipbuilding initiatives.
The guidelines further introduce a Shipbreaking Credit Note mechanism, under which ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40% of the scrap value.
This provision links ship recycling with new ship construction and supports a circular economy approach. Independent valuation and milestone-based assessments have been made mandatory to strengthen governance and ensure optimal utilisation of public funds.
Over the next decade, SBFAS is expected to support shipbuilding projects worth around ₹96,000 crore, stimulate domestic manufacturing, and generate employment across the maritime value chain.
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Guidelines for Shipbuilding Assistance Outline Long-Term Capacity Creation Under SbDS
The Guidelines for Shipbuilding Assistance also detail the Shipbuilding Development Scheme (SbDS), which has a budgetary outlay of ₹19,989 crore.
SbDS focuses on long-term capacity and capability creation through 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.
Under the scheme, greenfield shipbuilding 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 brownfield expansion of critical infrastructure such as dry docks, shiplifts, fabrication facilities, and automation systems. All disbursements will be milestone-based and monitored by independent evaluation agencies.
The guidelines also introduce 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, with the implementation of these measures and the creation of modern infrastructure and a skilled workforce, India’s commercial shipbuilding capacity is projected to increase to approximately 4.5 million gross tonnage per annum by 2047.
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.
The Guidelines for Shipbuilding Assistance have been formally approved and published on the Ministry of Ports, Shipping & Waterways’ official website to enable structured and transparent implementation of the schemes.
