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Government Notifies ₹44,700 Crore Shipbuilding Schemes to Boost Maritime Sector
MoPSW: Union Minister Sarbananda Sonowal stated that these guidelines will revitalize the shipbuilding industry, boost domestic production, and strengthen the country's maritime security and economic strength. Both schemes will be in effect until March 31, 2036, with a proposal to extend them until 2047.
The government has made a major move towards developing the maritime identity of the nation. The Union Ministry of Ports, Shipping, and Waterways has come up with guidelines for two major shipbuilding projects. The total investment for these two projects will be over ₹44,700 crore.
These schemes include the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS). The objective is to improve the domestic shipbuilding industry and make India globally competitive.
The government, under the SBFAS scheme, will establish a fund worth₹24,736 crore. Financial assistance has been planned for the development of ships, ranging from 15% to 25%, depending on the type of ships. There are different rates of assistance for small, large, and special ships. This amount will be disbursed in a phased manner, upon meeting set milestones. The second scheme, SBDS, has a budget of ₹19,989 crore. This scheme focuses on infrastructure, technology, and skill development, keeping in mind future needs.
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For better implementation of these schemes, a provision has been made for the establishment of a National Shipbuilding Mission, ensuring coordination and transparency.
The government has also introduced a new scheme under which shipowners who scrap ships in India will receive a credit note representing 40% of the scrap value. This will promote the recycling of old ships and the construction of new ships, and strengthen the circular economy.
According to a government statement, SBFAS is expected to support shipbuilding projects worth approximately ₹96,000 crore over the next 10 years. This will boost manufacturing in the country and generate significant employment in the maritime sector.
Under these plans, new greenfield shipbuilding clusters will be created, existing shipyards will be modernized, and the India Ship Technology Centre will be established at the Indian Maritime University, which will focus on research, design, innovation, and skill development. Greenfield clusters will receive 100 percent capital support for common infrastructure, while existing shipyards will receive up to 25 percent support for expansion.
With modern infrastructure and skilled labor, India's shipbuilding capacity is projected to reach 4.5 million gross tons per annum by 2047.
