Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS) notified with ₹44,700 Crore Outlay

Key facts

• The Ministry of Ports, Shipping & Waterways (MoPSW) notified the operational guidelines for the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS) to strengthen domestic shipbuilding capacity.
• The total approved outlay for the initiatives is ₹44,700 crore, comprising ₹24,736 crore for SBFAS and ₹19,989 crore for SbDS.
• Under SBFAS, the government will provide financial assistance ranging from 15% to 25% per vessel, depending on the vessel category, with stage-wise disbursement linked to defined milestones.
• The SBFAS introduces a Shipbreaking Credit Note, providing ship owners scrapping vessels at Indian yards a credit equivalent to 40% of the scrap value to support a circular economy.
• The SbDS provides 100% capital support for common maritime and internal infrastructure in greenfield shipbuilding clusters through a 50:50 Centre–State special purpose vehicle.
• Existing shipyards are eligible for 25% capital assistance under SbDS for brownfield expansion of critical infrastructure such as dry docks, shiplifts, and automation systems.
• The schemes include the establishment of a National Shipbuilding Mission and an India Ship Technology Centre under the Indian Maritime University to support research, design, and innovation.
• Both schemes will remain valid until March 31, 2036, with an in-principle extension envisaged up to 2047 to help India's commercial shipbuilding capacity rise to 4.5 million gross tonnage per annum.