Particle.news
Download on the App Store

Government Notifies Operational Rules for ₹44,700-Crore Shipbuilding Schemes

The rules introduce milestone-based funding with credit-risk cover to make shipbuilding projects more bankable.

Overview

  • SBFAS allocates ₹24,736 crore to offer 15%–25% assistance per vessel with stage-wise disbursement tied to defined milestones, independent valuation and incentives for series orders.
  • SbDS earmarks ₹19,989 crore for capacity creation, funding 100% of common infrastructure in greenfield clusters via 50:50 Centre–State SPVs and providing 25% capital support to upgrade existing shipyards.
  • A Credit Risk Coverage Framework provides government-backed insurance for pre-shipment, post-shipment and vendor-default risks to improve financing access.
  • The framework establishes a National Shipbuilding Mission and introduces a Shipbreaking Credit Note granting 40% credit on scrap value for vessels dismantled at Indian yards.
  • Both schemes run through March 31, 2036 with an in-principle path to 2047, with the ministry projecting about ₹96,000 crore in supported projects over the next decade and capacity rising toward roughly 4.5 million GT by 2047.