Parliament Question: Shipbuilding Companies in Maharashtra

GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING AND WATERWAYS LOK SABHA UNSTARRED QUESTION NO. 3528 ANSWERED ON 13.3.2026 SHIPBUILDING COMPANIES IN MAHARASHTRA 3528. PROF. VARSHA EKNATH GAIKWAD: DR. AMOL RAMSING KOLHE: SMT. SUPRIYA SULE: 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 shipbuilding and ship-repair companies are eligible to avail multiple Central incentives simultaneously, including the Shipbuilding Financial Assistance Policy, Ship Repair Cluster Development in Maharashtra, if so, the details thereof; (b) whether uniform eligibility and prioritisation guidelines are put in plan to avail the said incentive, if so, the details thereof; (c) the number of shipyards that have availed more than one incentive and the quantum of assistance received in the said State during last three years; (d) whether benefits are disproportionately cornered by a few large players, if so, the details thereof; (e) whether any independent assessment has been conducted to measure actual improvements in shipbuilding capacity, exports and employment in coastal districts such as Mumbai, Raigad and Ratnagiri in Maharashtra, if so, the details thereof; (f) the total number of companies that have received multiple incentives and cases of overlap or duplication identified across the country, State-wise including Maharashtra; and (g) the steps taken to ensure transparency, prevent misuse, reduce procedural delays and ensure fair competition and meaningful participation of small and medium shipyards in Maharashtra? ANSWER MINISTER OF PORTS, SHIPPING AND WATERWAYS (SHRI SARBANANDA SONOWAL) (a) to (g) Government of India approved the Shipbuilding Financial Assistance Policy (SBFAP) in the year 2016 under which the shipbuilding and ship-repair companies in India are eligible to avail assistance for the vessel building orders executed by them. This scheme is available till 31st March 2026.Further, an assessment of the shipbuilding sector through a third party was conducted in 2024. The report highlighted high employment multiplier of 6.4 of shipbuilding sector and a huge potential for generating both direct and indirect employment. It also highlighted the challenges constraining the growth of shipbuilding in India like lack of domestic demand, high cost of financing, capacity & technology limitations, etc. To address these challenges, Government of India, in September 2025, approved a comprehensive shipbuilding package including Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SBDS) to enhance India’s global competitiveness in shipbuilding and maritime sector. These schemes are open to all shipyards in India. The Government notifies detailed scheme guidelines and eligibility criteria to ensure transparency, reduction of procedural delays and to ensure fair and meaningful participation of all shipyards. The Government undertakes stakeholder consultations with industry to facilitate participation of shipyards, including small and medium shipyards before releasing guidelines. The guidelines for the SBFAS and SBDS have been issued in December 2025 and the shipyards have started submitting applications under the said schemes. The approvals for financial assistance under these guidelines are yet to be issued. Therefore, as of now shipyards have availed of assistance for vessel building orders only under SBFAP scheme. Further, a shipyard can avail financial assistance for vessel building orders under either SBFAP or SBFAS. Additionally, the shipyard can avail financial assistance for capacity expansion under SBDS. Applications under SBFAP, SBFAS and SBDS are applied on an online portal ensuring transparency, digitization and faster processing of applications. *****