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India Approves 288 Shipbuilding Contracts Worth Rs 19,748 Crore for 456 Vessels

The government has granted in-principle approval to 288 shipbuilding contracts worth nearly Rs 20,000 crore, covering 456 vessels under its financial assistance policy. Financial aid of over Rs 620 crore has already been disbursed to 23 shipyards for the construction of 204 vessels. The initiatives, including the Shipbuilding Development Scheme, aim to address sectoral challenges like high financing costs and boost India's global competitiveness. With a high employment multiplier, these schemes are projected to support projects worth Rs 96,000 crore over the next decade.

Key Points: India Clears Rs 19,748 Cr Shipbuilding Contracts for 456 Vessels

  • 288 contracts approved
  • Rs 19,748 crore total value
  • 456 vessels covered
  • Rs 620 cr already disbursed
2 min read

Shipbuilding: Centre clears 288 contracts worth Rs 19,748 crore covering 456 vessels

Govt approves 288 shipbuilding contracts under SBFAS, disburses Rs 620 cr for 204 vessels to boost maritime sector and employment.

"total financial assistance amounting to Rs 620.57 crore has been disbursed to 23 shipyards - Sarbananda Sonowal"

New Delhi, March 14

The government on Saturday said that under the Shipbuilding Financial Assistance Policy, a total of 288 contracts worth Rs 19,748 crore, covering 456 vessels, have received in-principle approval to date.

Moreover, total financial assistance amounting to Rs 620.57 crore has been disbursed to 23 shipyards for the construction and delivery of 204 vessels, according to the Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal.

The types of vessels covered include tugs, general cargo vessel, bulk carrier, oil tanker, crane pontoon, heavy deck cargo vessel, RO-RO pax vessel, crew boat, deck loading craft, coastal research vessel, modular pontoon, passenger catamaran, passenger cum motor cycle ferry, passenger ferry, landing craft, jack-up barge and self-elevating platform.

The government in September 2025 approved the Shipbuilding Development Scheme (SBDS) having provision for credit risk coverage to Indian shipyard and viability gap funding in the form of capital assistance to brownfield/existing Indian shipyards towards expansion of production capacity.

The guidelines for the same have been issued recently, the minister said in a written reply to the Lok Sabha.

An assessment of the shipbuilding sector through a third party was conducted in 2024.

The report highlighted the shipbuilding sector's high employment multiplier of 6.4 and a huge potential for generating both direct and indirect employment.

Further, it also highlighted challenges constraining the growth of shipbuilding in India like lack of domestic demand, high cost of financing, capacity and technology limitations, etc.

To address these challenges, the government approved SBFAS, Maritime Development Fund (MDF) and Shipbuilding Development Scheme (SBDS) to enhance India's global competitiveness in shipbuilding and maritime sector.

The government recently notified the operational guidelines for two major shipbuilding initiatives with Rs 44,700 crore outlay, which are aimed at strengthening India's domestic shipbuilding capacity and improving global competitiveness.

Under the SBFAS, which has a total corpus of Rs 24,736 crore, the government will provide financial assistance ranging from 15 per cent to 25 per cent per vessel, depending on the vessel category.

Over the next decade, SBFAS is expected to support shipbuilding projects worth about Rs 96,000 crore, stimulate domestic manufacturing and generate employment across the maritime value chain.

- IANS

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Reader Comments

P
Priya S
Good step, but the disbursement figure tells another story. Only Rs 620 crore disbursed so far? That's a small fraction of the approved amount. The government needs to ensure these schemes actually reach the shipyards on time without bureaucratic delays. Execution is key.
R
Rohit P
Finally focusing on our maritime strength! We have a huge coastline, it's high time we became a shipbuilding hub. The variety of vessels - from research ships to ferries - shows a holistic approach. This will reduce our dependence on foreign shipyards. Jai Hind!
S
Sarah B
As someone working in logistics, this is very promising. Efficient Indian-built vessels for coastal cargo can drastically reduce our logistics costs and port congestion. Hope they prioritize quality and timely delivery. The 'lack of domestic demand' challenge needs addressing.
V
Vikram M
The report correctly identifies high financing costs as a barrier. Indian entrepreneurs need easier credit to compete with China and Korea. The Maritime Development Fund is a good idea on paper. Let's see if it's accessible to smaller, private shipyards and not just the big players.
M
Michael C
Supporting over Rs 96,000 crore in projects over the next decade is an ambitious vision. This sector has a huge ripple effect on steel, electronics, and engineering. A strong domestic shipbuilding industry is crucial for both economic and strategic security. Well done.

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