Parliament Question: Shipbuilding Development Scheme

GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING AND WATERWAYS RAJYA SABHA STARRED QUESTION NO. *262 ANSWERED ON 17.03.2026 SHIPBUILDING DEVELOPMENT SCHEME *262. SHRI KESRIDEVSINH JHALA:

Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state:

(a) the objectives and key features of the Shipbuilding Development Scheme (SbDS) notified by the Ministry;

(b) the manner in which greenfield shipbuilding clusters will be developed, including the funding pattern between the Centre and the States;

(c) the details of the Credit Risk Coverage Framework introduced under the Scheme and its expected impact on improving project bankability; and

(d) the steps taken to establish the India Ship Technology Centre under the Indian Maritime University to promote research, innovation and skill development? ANSWER MINISTER OF PORTS, SHIPPING AND WATERWAYS (SHRI SARBANANDA SONOWAL)

(a) to (d) A statement is laid on the Table of House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF RAJYA SABHA STARRED QUESTION NO.*262 ANSWERED ON 17TH MARCH 2026 RAISED BY SHRI KESRIDEVSINH JHALA REGARDING “SHIPBUILDING DEVELOPMENT SCHEME”.

(a) to (d) The Shipbuilding Development Scheme (SbDS) aims to strengthen India’s domestic shipbuilding capacity and capability by expanding domestic output to 4.5 million Gross Tonnage (GT) annually by 2047. The key features includes greenfield cluster development, brownfield capacity expansion, shipbuilding risk coverage and capability development of the Indian shipbuilding sector through India Ship Technology Centre (ISTC).

The green field shipbuilding clusters are to be implemented 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 Credit Risk Coverage Framework introduced under the Shipbuilding Development Scheme aims to provide financial protection to Indian shipyards against key risks associated with shipbuilding contracts and vendor dependencies. It comprises coverage for risks such as pre-shipment, post-shipment and vendor-default risks faced by the shipyards and lenders.

This mechanism helps to reduce the perceived credit risk for banks and financial institutions, thereby improving the bankability of shipbuilding projects, enabling easier access to long- term financing and encouraging greater private investment in the sector.

An industry representative committee, comprising of relevant stakeholders including Indian Maritime University, public and private shipyards, Shipyards Association of India

(SAI), Indian Marine Designers Association (IMDA), has been set up with a mandate to establish ISTC as section-8 company. The mandate of the ISTC is to help in developing India’s capabilities related to shipbuilding design, training of manpower, R&D in shipbuilding and co-ordination for testing facilities.

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