New Delhi: The government on Saturday notified the operational guidelines for two major shipbuilding initiatives with Rs 44,700 crore outlay, which are aimed at strengthening India’s domestic shipbuilding capacity and improving global competitiveness.
Under the Shipbuilding Financial Assistance Scheme (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 vessel 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 are also included.
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.
The Shipbuilding Development Scheme (SbDS), with a budgetary outlay of Rs 19,989 crore, focuses on long-term capacity and capability creation. The scheme provides for 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 to support research, design, innovation and skills development.
The approved guidelines lay down a transparent and accountable framework for implementation.
Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal said that Prime Minister Narendra Modi’s leadership has given India’s shipbuilding sector a decisive policy reset.
“These guidelines create a stable and transparent framework that will revive domestic shipbuilding, boosting forward and backward linkage amping ‘Make in India’ initiative, enable large-scale investment and build world-class capacity, positioning India as a major maritime nation on the path to Viksit Bharat and Aatmanirbhar Bharat,” he mentioned.
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, while 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. Disbursements will be milestone-based and monitored by independent evaluation agencies.
The scheme also includes a Credit Risk Coverage Framework, offering government-backed insurance for pre-shipment, post-shipment and vendor-default risks to improve project bankability and financial resilience.
With the creation of modern infrastructure and a skilled workforce, India’s commercial shipbuilding capacity is projected to rise to about 4.5 million gross tonnage per annum by 2047, according to the ministry.
Both SBFAS and SbDS will remain valid until March 31, 2036, with an in-principle extension envisaged up to 2047.
(IANS)
