Ship Breaking Gets Boost with Credit Notes for Finance

1. India has become the first country in the world to introduce a Shipbreaking Credit Note (SbCN) under SBFAS 2.0.

2. Shipowners recycling vessels at Indian yards compliant with the Hong Kong International Convention will receive a tradeable SbCN.

3. The credit note can be used as a subsidy for constructing new ships at Indian shipyards.

4. SbCN is transferable, digitally processed, and valid for three years.

5. The scheme promotes safe and environmentally sustainable ship recycling.

6. It aims to increase investment in India's maritime and shipbuilding sectors.

7. The initiative will help Indian shipyards meet international standards and improve competitiveness.

8. It supports India's goal of developing a circular maritime economy.

9. The scheme is expected to create new economic opportunities across the shipping and shipbuilding value chain.

10. It strengthens India's position as a global leader in sustainable ship recycling and ship construction.

[ABS News Service/19.06.2026]

India has become the world’s first country to launch a Shipbreaking Credit Note (SbCN) under the Shipbuilding Financial Assistance Scheme, the SBFAS 2.0.

According to the scheme, shipowners who recycle their vessels at Indian facilities which comply with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships will get a tradeable SbCN.

It can be used as a subsidy for building new ships at Indian shipyards and would boost investment in the maritime sector.

The SbSN has many features which make it easy to use and exchange, like easy transferability to eligible stakeholders, a three-year validity period for shipowners and investors and digital processing to ensure transparency, efficiency and ease of access.

This would also encourage sustainable recycling practices while making Indian shipyards competent and at par with International standards.

It would also aid in India’s vision of developing a circular maritime economy and becoming a globally dominant name in shipbuilding.

The new initiative would generate new economic opportunities for stakeholders in the shipping and shipbuilding value chain while strengthening industrial capabilities and reinforcing India’s place as a major player in sustainable ship recycling and ship construction.