The government announced that 288 contracts worth Rs 19,748 crore have been provisionally approved under the Shipbuilding Financial Assistance Policy. Additionally, Rs 620.57 crore has been disbursed to 23 shipyards for constructing and delivering 204 vessels, as stated by Union Minister Sarbananda Sonowal. The vessels covered include tugs, cargo vessels, tankers, and various other types.
The Shipbuilding Development Scheme, approved in September 2025, offers credit risk coverage and funding to Indian shipyards for capacity expansion. Recent guidelines have been issued for this scheme, according to the minister’s response to the Lok Sabha. The shipbuilding sector’s potential for employment generation and challenges like financing costs and technology limitations were highlighted in a 2024 third-party assessment.
To enhance India’s shipbuilding competitiveness, the government has introduced initiatives like SBFAS, Maritime Development Fund, and SBDS. Operational guidelines for these initiatives, with a total outlay of Rs 44,700 crore, have been notified to boost domestic shipbuilding capacity. The SBFAS, with a corpus of Rs 24,736 crore, will provide financial assistance of 15-25% per vessel category, supporting projects worth around Rs 96,000 crore over the next decade.
