Government Introduces Credit Insurance Policies for Domestic and Export Shipbuilding

India’s shipbuilding industry is set to get financial protection through two new credit risk insurance products announced by the Shipping Ministry, as per the PIB press release. Union Minister Sarbananda Sonowal unveiled the policies at the 21st Maritime State Development Council meeting. 

The products have been developed under the Shipbuilding Development Scheme (SbDS), with separate coverage for domestic and export projects. 

Two Policies Cover Domestic and Export Projects 

ECGC Ltd has developed the Shipbuilding Project Credit Risk Insurance Policy (SbPCP) for export projects. The New India Assurance Co Ltd has developed the Business Credit Shield Policy Shipbuilders (BCSPS) to cover domestic projects. 

The central government will subsidise the insurance premiums and provide direct support to insurers if shipyards file claims. 

Focus on Payment Delays in Shipbuilding 

Shipbuilding projects often run for several years, leaving shipyards exposed to financial pressure if milestone payments are delayed. Sonowal said even a single missed payment could disrupt operations, and the new policies are intended to provide a financial safety net. 

The minister said the support would help shipyards focus on building vessels without the added uncertainty of delayed payments or sudden changes in global markets. 

Council Pushes Port-Linked Industrial Development 

The meeting also called on states to speed up connectivity projects linking ports through roads, railways, inland waterways, pipelines and conveyors. 

The council backed the development of industrial clusters near ports, with land availability, plug-and-play infrastructure and faster approvals. These clusters are expected to be coordinated with port expansion and connectivity plans. 

Sonowal also launched a Ready Reckoner for implementing ONOP, setting out central government circulars and expectations for states and Union Territories to accelerate implementation. 

Read More: India's Retail Inflation Hits 23-Month High of 5.54% in September 2026! 

Conclusion 

The two insurance policies address payment risks in domestic and export shipbuilding, while the council’s decisions focus on improving port connectivity and industrial development. The government’s premium support and claims assistance are intended to reduce financial pressure on shipyards. 

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