The ₹44,700 Crore Splash: India’s New Shipbuilding Revolution

The government has launched two major initiatives—the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS)—with a combined outlay of Rs 44,700 crore to strengthen India’s shipbuilding sector.

The schemes are aimed at enhancing domestic shipbuilding capacity and improving India’s global competitiveness. Under SBFAS, which has an allocation of Rs 24,736 crore, the government will provide financial assistance of 15 to 25 per cent per vessel, depending on the vessel type. The scheme also offers additional incentives for series orders and follows a stage-wise disbursement mechanism.

The Shipbuilding Development Scheme, with a budget of Rs 19,989 crore, is focused on long-term capacity building. It includes the development of greenfield shipbuilding clusters, modernisation of existing shipyards, and support for research, innovation and skill development through the establishment of an India Ship Technology Centre.

Union Minister Sarbananda Sonowal said the guidelines provide a stable policy framework for reviving domestic shipbuilding and strengthening industrial linkages. The schemes also promote a circular economy by introducing shipbreaking credits for vessel recycling.

News by Rahul Yelligetti.