(THE GIST OF PIB) Shipbuilding Financial Assistance Scheme

(DECEMBER-2025)

Shipbuilding Financial Assistance Scheme

Recently, the Ministry of Ports, Shipping & Waterways (MoPSW) notified the operational guidelines for two major shipbuilding initiatives—the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS).

About Shipbuilding Financial Assistance Scheme:

It is aimed at strengthening India’s domestic shipbuilding capacity and improving global competitiveness.
Time Period: It will remain valid until 2036.
Nodal Ministry: Ministry of Ports, Shipping & Waterways
Features of Shipbuilding Financial Assistance Scheme:
Financial Assistance: The government will provide financial assistance depending on the vessel category.
Graded Support: 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.
Shipbreaking Credit Note: Under this, ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40% of the scrap value.
It provides for the establishment of a National Shipbuilding Mission to ensure coordinated planning and execution of shipbuilding initiatives.

Key Facts about Shipbuilding Development Scheme:

It focuses on long-term capacity and capability creation.
Features of Shipbuilding Development Scheme
Infrastructure Development: It provides for the development of greenfield shipbuilding clusters, expansion and modernisation of existing brownfield shipyards.
India Ship Technology Centre: It is to be established under the Indian Maritime University to support research, design, innovation and skills development.

Funding:

Greenfield shipbuilding clusters will receive 100% capital support for common maritime and internal infrastructure through a 50:50 Centre–State special purpose vehicle.
Brownfield expansion will be eligible for 25% capital assistance for brownfield infrastructure such as dry docks, shiplifts etc.
Credit Risk Coverage: The scheme also includes a Credit Risk Coverage Framework, offering government-backed insurance for pre-shipment, post-shipment and vendor-default risks.