News: The Union Cabinet approved a ₹69,725 crore package to revitalise shipbuilding and maritime infrastructure, extending SBFAS and launching complementary funds and schemes for capacity, finance, and technology.
About Shipbuilding Financial Assistance Scheme (SBFAS)
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| Aim | To incentivize shipbuilding in India and strengthen domestic shipyard competitiveness for both domestic and export orders. |
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Complementary financial assistance for shipbuilding
- Maritime Development Fund (MDF): ₹25,000 crore long-term financing window.
- Maritime Investment Fund: ₹20,000 crore with 49% Government participation.
- Interest Incentivization Fund: ₹5,000 crore to lower effective cost of debt and improve project bankability.
- Shipbuilding Development Scheme (SbDS): ₹19,989 crore for capacity and risk cover.
- Capacity target: It will support mega shipbuilding clusters and infrastructure expansion.
- Technology: To Establish India Ship Technology Centre under Indian Maritime University.
- Risk coverage: It Includes insurance support for shipbuilding projects.
