Only Rs 600 crs Released for Shipbuilding

Key Highlights

· Contracts Approved:

o 288 contracts worth ₹19,748 crore.

o Covers 456 vessels (tugs, cargo ships, bulk carriers, oil tankers, ferries, catamarans, jack-up barges, research vessels, etc.).

· Financial Assistance Disbursed:

o ₹620.57 crore released to 23 shipyards.

o Supported construction & delivery of 204 vessels.

· New Policy Measures (Sept 2025):

o Shipbuilding Development Scheme (SBDS):

§ Credit risk coverage for Indian shipyards.

§ Viability gap funding for brownfield/existing shipyards to expand capacity.

o Shipbuilding Package: Includes SBFAS, Maritime Development Fund (MDF), and SBDS to enhance global competitiveness.

· Sectoral Assessment (2024):

o Employment Multiplier: 6.4 (high potential for job creation).

o Challenges Identified: Lack of domestic demand, high financing costs, limited capacity & technology.

o Government Response: Comprehensive package to address constraints and strengthen competitiveness.

The SBFAP and SBDS together aim to expand shipbuilding capacity, reduce financing risks, and position India as a competitive maritime hub, while generating large-scale employment through a sector with strong multiplier effects.

[ABS News Service/14.03.2026]

Under the Shipbuilding Financial Assistance Policy (SBFAP), a total of 288 contracts worth ₹19,748 crore, covering 456 vessels, have received in-principle approval till date. The types of vessels covered include tugs, general cargo vessel, bulk carrier, oil tanker, crane pontoon, heavy deck cargo vessel, RO-RO pax vessel, crew boat, deck loading craft, coastal research vessel, modular pontoon, passenger catamaran, passenger cum motor cycle ferry, passenger ferry, landing craft, jack-up barge and self-elevating platform.

As of now, total financial assistance amounting to ₹620.57 crore has been disbursed to 23 shipyards for the construction and delivery of 204 vessels. Additionally, Government of India in September 2025 approved the Shipbuilding Development Scheme (SBDS) having provision for credit risk coverage to Indian Shipyard and viability gap funding in the form of capital assistance to brownfield/existing Indian Shipyards towards expansion of production capacity. The guidelines for the same have been issued recently.

An assessment of the shipbuilding sector through a third party was conducted in 2024. The report highlighted the shipbuilding sector’s high employment multiplier of 6.4 and a huge potential for generating both direct and indirect employment. Further, it also highlighted challenges constraining the growth of shipbuilding in India like lack of domestic demand, high cost of financing, capacity & technology limitations, etc. To address these challenges, Government of India, in September 2025, approved a shipbuilding package including Shipbuilding Financial Assistance Scheme (SBFAS), Maritime Development Fund (MDF) and Shipbuilding Development Scheme (SBDS) to enhance India’s global competitiveness in shipbuilding and maritime sector.

This information was given by the Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, in a written reply to the Lok Sabha on 14 March, 2026.