INDUSTRY
Shipbuilding capacity set for a big boost with Rs 44,700-crore allocation
- IBJ Bureau
- Dec 29, 2025
The Ministry of Ports, Shipping and Waterways has rolled out two major shipbuilding initiatives with a total outlay of over Rs 44,700 crore.
The two programmes – Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS) – are aimed at strengthening the country’s domestic shipbuilding capacity and improving global competitiveness, according to a statement from the shipping ministry.
Under SBFAS, which has a total corpus of Rs 24,736 crore, the government will provide financial assistance of 15 to 25 per cent per vessel, depending on the category of the vessel.
The SbDS, with a budgetary outlay of Rs 19,989 crore, focuses on long-term capacity and capability creation.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal has said that these guidelines create a stable and transparent framework that will revive domestic shipbuilding, boosting forward and backward linkages.
The schemes introduce graded support for small normal, large normal and specialised vessels, with stage-wise disbursement linked to defined milestones and backed by security instruments.
The schemes also provide for establishment of a National Shipbuilding Mission to ensure coordinated planning and execution of shipbuilding initiatives.
They also introduce a shipbreaking credit note, under which ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40 per cent of the scrap value, linking ship recycling with new ship construction and supporting a circular-economy approach.
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