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GOVERNMENT OF INDIA
MINISTRY OF PORTS, SHIPPING AND WATERWAYS
LOK SABHA
UNSTARRED QUESTION NO. 4758
ANSWERED ON 20.03.2026
REVIVAL OF SHIPBUILDING INDUSTRY
4758. SHRI RAO RAJENDRA SINGH:
Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state:
प(cid:517)न,पोत प(cid:303)रवहन और जलमाग(cid:330) मं(cid:361)ी
(a) whether the Government has reviewed the progress made towards enhancing
India’s share in global shipbuilding and ship repair following the announcement of
measures under the Union Budget 2025–26 and in alignment with Maritime India
Vision 2030 and Maritime AmritKaal Vision 2047;
(b) if so, the details thereof;
(c) whether the Government has taken steps to revamp the Shipbuilding Financial
Assistance Policy and to operationalize the proposed Maritime Development Fund
with a corpus of Rs. 25,000 crore and if so, the details thereof;
(d) whether the Government proposes to develop shipbuilding clusters in the
country with supporting infrastructure, skilling initiatives and technology support; and
(e) if so, the details thereof along with the measurable outcomes achieved in terms
of private investment attracted, orders secured by Indian shipyards, employment
generated and capacity augmentation in the shipbuilding and ship repair sector
during the last two years?
ANSWER
MINISTER OF PORTS, SHIPPING AND WATERWAYS
(SHRI SARBANANDA SONOWAL)
(a) to (e) The Government has reviewed the India’s Shipbuilding sector following the
announcement of measures under the Union Budget 2025–26 and adopted a 4-pillar
strategy to revitalize shipbuilding sector. The Government has accordingly approved
a comprehensive package of ₹ 69,725 crore to strengthen domestic shipbuilding
capacity, maritime financing and skilling.The key components of the shipbuilding
package include:
i. Shipbuilding Financial Assistance Scheme (SBFAS), an enhancement of
Shipbuilding Financial Assistance Policy (SBFAP), with outlay of ₹ 24,736crore to address cost disadvantages of Indian shipyards vis-a-vis global
shipyards;
ii. Maritime Development Fund (MDF) corpus of ₹ 25,000 crore for providing
long term financing support to shipbuilding and maritime sector comprising a
Maritime Investment Fund of ₹ 20,000 crore and Interest Incentivisation Fund
of ₹ 5,000 crore;
iii. Shipbuilding Development Scheme (SbDS) with ₹19,989 crore outlay to
expand Indian shipbuilding output capacity to 4.5 million Gross Tonnage
annually by setting up greenfield shipbuilding clusters and capacity expansion
of the existing shipyards. These targets have been set to position India as a
competitive global shipbuilding force in line with vision contained in Maritime
India Vision 2030 and Maritime AmirtKaal Vision 2047 documents.
The scheme guidelines to operationalize SBFAS and SbDShave been issued
on 26.12.2025. The guidelines for MDF have also been issued on 20.02.2026.
Further, the Government proposes to develop greenfield shipbuilding clusters
under SBDS through a Special Purpose Vehicle (SPV) with 50:50 joint venture
arrangement between Central Government and State Government entities. The
scheme envisages to provide 100% capital assistance of the cost of eligible items for
the approved greenfield shipbuilding clusters. The SbDS also has provision to
establish India Ship Technology Centre (ISTC) for overall development of the
capabilities of Indian shipbuilding sector including ship design, Research &
Development, skill development, software, etc.
From April 2024 to February 2026, in-principle approvals have been given to
the tune of about ₹ 1,800 crore of financial assistance for a cumulative vessel value
of about ₹ 12,000 crore. Further, given the high employment multiplier of 6.4 in
shipbuilding industry, the financial assistance given has catalysed generation of
large number of direct as well as indirect employment.
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