The Ministry of Ports, Shipping and Waterways (MoPSW) has notified operational guidelines for two major shipbuilding initiatives with a total outlay of ₹44,700 crore. The move represents a significant government push to boost shipbuilding capacity and enhance global competitiveness for India's maritime industry. Union Minister Sarbananda Sonowal announced the guidelines, describing the initiative as a "decisive policy reset" that will create a stable and transparent framework for domestic shipbuilding.

Key Scheme Details

The government's comprehensive approach includes two primary schemes designed to transform India's shipbuilding landscape:

Shipbuilding Financial Assistance Scheme (SBFAS)

The SBFAS will provide substantial financial support for ship construction in India, offering assistance ranging between 15% and 25% per vessel depending on the category. The scheme introduces graded support across different vessel types:

• Small normal vessels
• Large normal vessels
• Specialised vessels

Key features of SBFAS include:

• Stage-wise disbursement linked to defined milestones
• Backed by security instruments
• Special incentives for series orders
• Establishment of a National Shipbuilding Mission for coordinated planning and execution
• Introduction of a Shipbreaking Credit Note, offering ship owners 40% of scrap value for vessels recycled at Indian yards

Shipbuilding Development Scheme (SbDS)

The SbDS scheme focuses on building sustainable capacity enhancement in India's shipbuilding sector through strategic infrastructure development:

The scheme proposes establishing an India Ship Technology Centre at the Indian Maritime University for research, design, innovation, and skill development. Funds will be released based on milestones and independently monitored to ensure smooth execution.

Industry Impact and Projections

Leading domestic shipbuilding companies, including Mazagon Dock, Garden Reach Shipbuilders and Engineers (GRSE), and Cochin Shipyard, are expected to benefit significantly from the government's initiative. The schemes aim to boost the domestic maritime industry through sustainable capacity building and enhanced manufacturing infrastructure.

Over the next decade, SBFAS is projected to support projects worth ₹96,000.00 crore, promoting domestic manufacturing and employment generation in the industry. The government projects that with modern infrastructure and a skilled workforce, India's commercial shipbuilding capacity will rise to approximately 4.50 million gross tonnage per annum by 2047.

Strategic Objectives

The initiative aligns with the government's broader 'Make in India' and 'Aatmanirbhar Bharat' objectives, positioning India as a major maritime nation. The schemes are designed to:

• Revive domestic shipbuilding
• Enable large-scale investment
• Build world-class capacity

The comprehensive approach addresses both immediate financial support needs and long-term infrastructure development requirements for sustainable industry growth.