{"id":352988,"date":"2025-12-30T16:29:14","date_gmt":"2025-12-30T10:59:14","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=352988"},"modified":"2025-12-30T16:29:14","modified_gmt":"2025-12-30T10:59:14","slug":"shipbuilding-financial-assistance-scheme-sbfas-and-shipbuilding-development-scheme-sbds","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/shipbuilding-financial-assistance-scheme-sbfas-and-shipbuilding-development-scheme-sbds\/","title":{"rendered":"Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)"},"content":{"rendered":"<p><strong>News: <\/strong>On December 27, 2025, operational guidelines for two shipbuilding schemes (SBFAS and SbDS) were notified to strengthen domestic capacity and improve global competitiveness.<\/p>\n<h2>About Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)<\/h2>\n<figure id=\"attachment_352989\" aria-describedby=\"caption-attachment-352989\" style=\"width: 284px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-352989\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/12\/Source-PIB-6.jpg?resize=284%2C346&#038;ssl=1\" alt=\"Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)\" width=\"284\" height=\"346\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/12\/Source-PIB-6.jpg?resize=246%2C300&amp;ssl=1 246w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/12\/Source-PIB-6.jpg?w=695&amp;ssl=1 695w\" sizes=\"auto, (max-width: 284px) 100vw, 284px\" \/><figcaption id=\"caption-attachment-352989\" class=\"wp-caption-text\">Source &#8211; PIB<\/figcaption><\/figure>\n<ul>\n<li>The government has notified <strong>two complementary schemes<\/strong> to <strong>revive domestic shipbuilding<\/strong> through <strong>financial support, infrastructure creation, and stronger institutional coordination.<\/strong><\/li>\n<li><strong>Nodal Ministry:<\/strong> Both schemes are implemented by the <strong>Ministry of Ports, Shipping &amp; Waterways (MoPSW).<\/strong><\/li>\n<li><strong>Duration<\/strong>: Both schemes will remain valid <strong>until March 31, 2036, with extension envisaged up to 2047.<\/strong><\/li>\n<li><strong>Combined corpus: <\/strong>The total combined corpus<strong> of <\/strong>\u20b9<strong>44,700 crore.<\/strong><\/li>\n<\/ul>\n<h2>About Shipbuilding Financial Assistance Scheme (SBFAS)<\/h2>\n<ul>\n<li>The Shipbuilding Financial Assistance Scheme (<strong>SBFAS<\/strong>) aims to <strong>revive domestic shipbuilding and enhance competitiveness<\/strong> through direct <strong>financial assistance<\/strong> to shipbuilders.<\/li>\n<li><strong>Total corpus:<\/strong> The total corpus of the <strong>scheme is <\/strong>\u20b9<strong>24,736 crore<\/strong><\/li>\n<li><strong>Key features<\/strong>\n<ul>\n<li><strong>Financial Assistance Rates: <\/strong>It offers graded support for <strong>small normal, large normal, and specialised vessels<\/strong> with milestone-based disbursement.\n<ul>\n<li>The <strong>government<\/strong> provides <strong>15% assistance<\/strong> for vessels valued <strong>below \u20b9100 crore.<\/strong><\/li>\n<li>The government provides <strong>20% assistance<\/strong> for vessels valued above <strong>\u20b9100 crore.<\/strong><\/li>\n<li>The government provides <strong>25% assistance<\/strong> for <strong>specialised vessels, including green or hybrid propulsion ships.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>It includes incentives for <strong>series orders and requires security instruments for accountability.<\/strong><\/li>\n<li>It introduces a <strong>National Shipbuilding Mission <\/strong>and a <strong>Shipbreaking Credit Note<\/strong> linked to ship recycling.<\/li>\n<li><strong>Shipbreaking Credit Note:<\/strong> Ship owners who scrap vessels at Indian yards receive a credit note worth <strong>40% of the scrap value<\/strong>, which can be applied toward the cost of constructing new vessels.<\/li>\n<li><strong>Domestic Value Addition:<\/strong> A minimum of <strong>30% local manufacturing<\/strong> content is <strong>required to qualify for incentives.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>About Shipbuilding Development Scheme (SbDS)<\/h2>\n<ul>\n<li>Shipbuilding Development Scheme (SbDS) focuses on long-term capacity creation through infrastructure, technology, and skills development.<\/li>\n<li><strong>Total corpus:<\/strong> The total corpus of the <strong>scheme is <\/strong>\u20b9<strong>19,989 crore.<\/strong><\/li>\n<li><strong>Key features:<\/strong>\n<ul>\n<li><strong>Greenfield Shipbuilding Clusters:<\/strong> The government provides <strong>100% capital support<\/strong> for common maritime and internal infrastructure in new clusters. This is implemented through a <strong>50:50 Special Purpose Vehicle (SPV) model<\/strong> between the Central and State governments.<\/li>\n<li><strong>Brownfield Modernization:<\/strong> Existing shipyards are eligible for <strong>25% capital assistance<\/strong> to expand or modernize critical infrastructure, such as dry docks, shiplifts, automation systems, and fabrication facilities. .<\/li>\n<li>It establishes an <strong>India Ship Technology Centre<\/strong> under Indian Maritime University for research and innovation.<\/li>\n<li>It includes a <strong>Credit Risk Coverage Framework<\/strong> to improve project bankability.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/shipbuilding-financial-assistance-scheme-sbfas-and-shipbuilding-development-scheme-sbds\/\">Continue reading <span class=\"screen-reader-text\">Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872],"class_list":["post-352988","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/352988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=352988"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/352988\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=352988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=352988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=352988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}