MoPSW Releases Operational Framework for ₹44,000+ Crore Shipbuilding Schemes

The Ministry of Ports, Shipping & Waterways (MoPSW) has notified the operational guidelines for two flagship initiatives, the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS). 

These schemes are aimed at strengthening India’s domestic shipbuilding ecosystem, enhancing global competitiveness, and creating a transparent and accountable framework for long-term sectoral growth.

Speaking on the occasion, Union Minister Sarbananda Sonowal said the guidelines represent a decisive policy reset under Prime Minister Narendra Modi’s leadership. 

He noted that the framework would revive domestic shipbuilding, strengthen forward and backward linkages under the Make in India initiative, attract large-scale investment, and build world-class maritime capacity aligned with the vision of Viksit Bharat and Atmanirbhar Bharat.

Shipbuilding Financial Assistance Scheme (SBFAS)

Under SBFAS, which has a total corpus of ₹24,736 crore, the government will provide financial assistance ranging from 15% to 25% per vessel, depending on the category. 

The scheme introduces graded incentives for small normal, large normal, and specialised vessels, along with milestone-linked disbursements supported by security instruments. Additional incentives have been included for series orders to encourage scale and efficiency.

The scheme also provides for the establishment of a National Shipbuilding Mission to ensure coordinated planning and execution. A Shipbreaking Credit Note mechanism has been introduced, under which ship owners scrapping vessels at Indian yards will receive credits equivalent to 40% of the scrap value. 

This links ship recycling with new construction and supports a circular economy approach.

Over the next decade, SBFAS is expected to support shipbuilding projects worth around ₹96,000 crore and generate employment across the maritime value chain.

Shipbuilding Development Scheme (SbDS)

The Shipbuilding Development Scheme has a budgetary outlay of ₹19,989 crore and focuses on long-term capacity building. 

It supports the development of greenfield shipbuilding clusters, modernisation of brownfield shipyards, and the creation of an India Ship Technology Centre under the Indian Maritime University for research, design, innovation, and skill development.

Greenfield clusters will receive 100% capital support for common infrastructure through a 50:50 Centre–State SPV model. 

Existing shipyards will be eligible for 25% capital assistance for expanding critical infrastructure such as dry docks, shiplifts, fabrication facilities, and automation systems. Disbursements will be milestone-based and independently monitored.

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Conclusion

With both SBFAS and SbDS valid until March 31, 2036, and an extension envisaged up to 2047, the schemes are expected to significantly enhance India’s shipbuilding capacity to about 4.5 million gross tonnage per annum by 2047. Together, they aim to generate employment, promote indigenous technology, strengthen maritime security, and reinforce India’s position as a globally competitive maritime nation.

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