The government has introduced two major shipbuilding schemes, the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS), with a combined outlay of Rs 44,700 crore.

These initiatives aim to enhance India’s shipbuilding capabilities and global competitiveness. Under SBFAS, which has a budget of Rs 24,736 crore, the government will offer financial assistance ranging from 15 percent to 25 percent per vessel, depending on its type. The scheme also includes incentives for series orders and a stage-wise disbursement process. The SbDS, with a budget of Rs 19,989 crore, focuses on building long-term capacity by developing greenfield shipbuilding clusters and modernising existing shipyards. It also supports research, innovation, and skill development through the establishment of an India Ship Technology Centre.

Union Minister Sarbananda Sonowal stated that the guidelines create a stable framework for reviving domestic shipbuilding and strengthening industrial linkages. The schemes also aim to support a circular economy through shipbreaking credits for recycling vessels.