The Central government will provide capital support of up to 25 percent for brownfield shipyard expansion projects as per the draft guidelines issued by the Ministry of Ports, Shipping, and Waterways.

The funding, under the Rs 19,989 crore Shipbuilding Development Scheme (SbDS) approved in September 2025, aims to boost production capacity and infrastructure in existing shipyards. The support will be distributed in four tranches based on technical, physical, and financial milestones. Eligible shipyards must have been in operation for at least three years. The assistance will cover projects such as the creation of dry docks, fabrication facilities, and cranes. However, shipyards within greenfield clusters will not be eligible for separate support.

The capital support seeks to incentivise investment by operational shipyards for expanding production capacity,  and creating essential infrastructure for large-scale commercial shipbuilding.