Shipbuilding Financial Assistance Scheme 2025: ₹44,700 Crore Boost to Maritime Sector

Overview

The Ministry of Ports, Shipping and Waterways (MoPSW) has notified comprehensive operational guidelines for two landmark initiatives: the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS). Together, these schemes represent a combined outlay of ₹44,700 crore, aimed at transforming India into a global shipbuilding hub.

Shipbuilding Financial Assistance Scheme (SBFAS)

• Total corpus of ₹24,736 crore allocated for financial assistance
• Assistance ranges from 15% to 25% per vessel, depending on vessel type and category
• Introduces innovative Shipbreaking Credit Note mechanism
• Ship owners scrapping vessels in Indian shipyards receive 40% of scrap value as credit
• Encourages domestic ship recycling and sustainable maritime practices

Shipbuilding Development Scheme (SbDS)

• Outlay of ₹19,989 crore for long-term infrastructure development
• Focus on modernizing existing shipyards with cutting-edge technology
• Development of greenfield shipbuilding clusters across coastal states
• Investment in maritime research and innovation centers
• Enhancement of skill development programs for shipbuilding workforce

Implementation Timeline

• Both schemes valid until 31st March 2036
• In-principle extension planned beyond 2036 based on sector performance
• Expected to generate thousands of direct and indirect employment opportunities
• Target to capture significant share of the global shipbuilding market

Strategic Impact

These initiatives address India's historical dependence on foreign shipyards and reduce the outflow of foreign exchange. By strengthening domestic capacity, India aims to build commercial vessels, defense ships, and specialized maritime equipment locally. The schemes align with the Aatmanirbhar Bharat vision and the Maritime India Vision 2030.