News: On December 27, 2025, operational guidelines for two shipbuilding schemes (SBFAS and SbDS) were notified to strengthen domestic capacity and improve global competitiveness.
About Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)
- The government has notified two complementary schemes to revive domestic shipbuilding through financial support, infrastructure creation, and stronger institutional coordination.
- Nodal Ministry: Both schemes are implemented by the Ministry of Ports, Shipping & Waterways (MoPSW).
- Duration: Both schemes will remain valid until March 31, 2036, with extension envisaged up to 2047.
- Combined corpus: The total combined corpus of ₹44,700 crore.
About Shipbuilding Financial Assistance Scheme (SBFAS)
- The Shipbuilding Financial Assistance Scheme (SBFAS) aims to revive domestic shipbuilding and enhance competitiveness through direct financial assistance to shipbuilders.
- Total corpus: The total corpus of the scheme is ₹24,736 crore
- Key features
- Financial Assistance Rates: It offers graded support for small normal, large normal, and specialised vessels with milestone-based disbursement.
- The government provides 15% assistance for vessels valued below ₹100 crore.
- The government provides 20% assistance for vessels valued above ₹100 crore.
- The government provides 25% assistance for specialised vessels, including green or hybrid propulsion ships.
- It includes incentives for series orders and requires security instruments for accountability.
- It introduces a National Shipbuilding Mission and a Shipbreaking Credit Note linked to ship recycling.
- Shipbreaking Credit Note: Ship owners who scrap vessels at Indian yards receive a credit note worth 40% of the scrap value, which can be applied toward the cost of constructing new vessels.
- Domestic Value Addition: A minimum of 30% local manufacturing content is required to qualify for incentives.
- Financial Assistance Rates: It offers graded support for small normal, large normal, and specialised vessels with milestone-based disbursement.
About Shipbuilding Development Scheme (SbDS)
- Shipbuilding Development Scheme (SbDS) focuses on long-term capacity creation through infrastructure, technology, and skills development.
- Total corpus: The total corpus of the scheme is ₹19,989 crore.
- Key features:
- Greenfield Shipbuilding Clusters: The government provides 100% capital support for common maritime and internal infrastructure in new clusters. This is implemented through a 50:50 Special Purpose Vehicle (SPV) model between the Central and State governments.
- Brownfield Modernization: Existing shipyards are eligible for 25% capital assistance to expand or modernize critical infrastructure, such as dry docks, shiplifts, automation systems, and fabrication facilities. .
- It establishes an India Ship Technology Centre under Indian Maritime University for research and innovation.
- It includes a Credit Risk Coverage Framework to improve project bankability.
