The Indian government has announced new operational guidelines for two significant shipbuilding initiatives, with a total investment of Rs 44,700 crore (approximately $5.4 billion). These initiatives aim to bolster domestic shipbuilding capabilities and enhance India’s competitiveness in the global maritime sector. The programs include the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS), both designed to revive local shipyards, attract substantial investments, and foster a robust maritime manufacturing ecosystem.
The SBFAS, with a budget of Rs 24,736 crore (around $3.0 billion), will provide financial support ranging from 15% to 25% of vessel costs, depending on the type. This scheme is expected to facilitate shipbuilding projects worth approximately Rs 96,000 crore (nearly $11.6 billion) over the next decade, thereby stimulating domestic production and generating employment within the maritime sector.
The SbDS, funded with Rs 19,989 crore (about $2.4 billion), aims for long-term capacity building. It includes the development of new shipbuilding clusters and the modernization of existing shipyards. The initiative will also establish an India Ship Technology Centre at the Indian Maritime University to promote research and skill development. A transparent framework for implementation has been outlined, ensuring milestone-based disbursements and independent monitoring.
Union Minister Sarbananda Sonowal emphasized that these initiatives represent a pivotal shift in the shipbuilding sector, aligning with Prime Minister Narendra Modi’s vision of a self-reliant India. The ministry projects that with enhanced infrastructure and skilled labor, India’s commercial shipbuilding capacity could reach around 4.5 million gross tonnage annually by 2047. Both the SBFAS and SbDS are set to remain effective until March 31, 2036, with potential extensions until 2047.
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