Govt launches 2 shipbuilding initiatives with Rs 44,700 cr outlay
Over the next decade, the statement said, SBFAS is expected to support shipbuilding projects worth about Rs 96,000 crore, stimulate domestic manufacturing, and generate employment across the maritime value chain
New Delhi: The Ministry of Ports, Shipping and Waterways (MoPSW) has notified guidelines for two major shipbuilding initiatives with a total outlay of over Rs 44,700 crore.
The two initiatives -- the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS) -- are aimed at strengthening the country's domestic shipbuilding capacity and improving global competitiveness, as per an official statement.
Under SBFAS, which has a total corpus of Rs 24,736 crore, the government will provide financial assistance of 15-25 per cent per vessel, depending on the category of the vessel. The SbDS, with a budgetary outlay of Rs 19,989 crore, focuses on long-term capacity and capability creation. Union Minister of Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal said that these guidelines create a stable and transparent framework that will revive domestic shipbuilding, boosting forward and backward linkages, the official statement said.
It said the scheme introduces graded support for small normal, large normal, and specialised vessels, with stage-wise disbursement linked to defined milestones and backed by security instruments. Incentives for series orders are also included, the statement added.
The scheme also provides for the establishment of a National Shipbuilding Mission to ensure coordinated planning and execution of shipbuilding initiatives.
It also introduces a shipbreaking credit note, under which ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40 per cent of the scrap value, linking ship recycling with new ship construction and supporting a circular economy approach.
According to the statement, independent valuation and milestone-based assessments have been made mandatory to strengthen governance and ensure efficient use of public funds.
Over the next decade, the statement said, SBFAS is expected to support shipbuilding projects worth about Rs 96,000 crore, stimulate domestic manufacturing, and generate employment across the maritime value chain.
