SHIPBUILDING FINANCIAL ASSISTANCE POLICY

Under the Shipbuilding Financial Assistance Policy (SBFAP), a total of 288  contracts worth ₹19,748 crore, covering 456 vessels, have received in-principle

approval till date. The types of vessels covered include tugs, general cargo vessel, bulk  carrier, oil tanker, crane pontoon, heavy deck cargo vessel, RO-RO pax vessel, crew  boat, deck loading craft, coastal research vessel, modular pontoon, passenger  catamaran, passenger cum motor cycle ferry, passenger ferry, landing craft, jack-up  barge and self-elevating platform.

As of now, total financial assistance amounting to ₹620.57 crore has been  disbursed to 23 shipyards for the construction and delivery of 204 vessels. Additionally, Government of India in September 2025 approved the Shipbuilding  Development Scheme (SBDS) having provision for credit risk coverage to Indian  Shipyard and viability gap funding in the form of capital assistance to brownfield/existing  Indian Shipyards towards expansion of production capacity. The guidelines for the same  have been issued recently.

An assessment of the shipbuilding sector through a third party was conducted  in 2024. The report highlighted the shipbuilding sector’s high employment multiplier of 6.4  and a huge potential for generating both direct and indirect employment. Further, it also  highlighted challenges constraining the growth of shipbuilding in India like lack of  domestic demand, high cost of financing, capacity & technology limitations, etc. To  address these challenges, Government of India, in September 2025, approved a  shipbuilding package including Shipbuilding Financial Assistance Scheme (SBFAS),  Maritime Development Fund (MDF) and Shipbuilding Development Scheme (SBDS) to  enhance India’s global competitiveness in shipbuilding and maritime sector.

This information was given by the Union Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, in a written reply to the Lok Sabha.