Executive Summary:
The Ministry of Ports, Shipping and Waterways addressed questions regarding the Shipbuilding Financial Assistance Policy (SBFAP) in response to Lok Sabha Unstarred Question No. 964 on July 25, 2025. The SBFAP 2.0 is yet to be approved. The previous SBFAP disbursed Rs 499.61 crore for 177 vessels and faced hurdles due to long construction times and the COVID-19 pandemic.
Key Points / Main Content:
Previous SBFAP Details:
Financial Assistance: Rs 499.61 crore disbursed for 177 vessels.
Beneficiary Shipyards: Includes AH Wadia Boat Builders, AC Roy Company, Cochin Shipyard Limited, Goa Shipyard Limited, and others (listed with number of ships financed).
Vessel Types: Tugs, general cargo vessels, bulk carriers, oil tankers, and other specialized vessels were financed.
Export Orders: 142 export vessels received in-principle approvals, with 19 ships delivered and financed, exported to countries including European countries, UAE, Guyana, and Mauritius.
Implementation Hurdles: Long shipbuilding gestation periods and the COVID-19 pandemic affected the industry.
Financial Assistance Trends: Increased from Rs 29 Cr in 2018-19 to Rs 90 Cr and Rs 137 Cr in 2023-24 and 2024-25 respectively.
SBFAP 2.0 (Proposed):
Eligibility: Details regarding eligibility of public and private shipyards are pending policy approval.
Coverage: Details on the types of vessels to be covered are pending policy approval.
Incentives: Details regarding incentives for technological upgradation, automation, and domestic sourcing are pending policy approval.
Approval Status: Cabinet approval is pending.
Rollout Timeline: Timeline is pending policy approval.
Shipbuilding Promotion:
Location: All shipyards financed are located in coastal or near-coastal regions.
Impact Analysis:
Shipyards:
Impact: Benefited from financial assistance under the previous SBFAP for vessel construction and export. May benefit from SBFAP 2.0 if approved, depending on eligibility criteria and incentives.
Action Required: Await details and approval of SBFAP 2.0 to understand eligibility and potential benefits.
Government (Ministry of Ports, Shipping and Waterways):
Impact: Responsible for policy formulation, approval, and disbursement of financial assistance.
Action Required: Secure Cabinet approval for SBFAP 2.0 and communicate policy details to stakeholders.
Vessel Owners/Operators:
Impact: Benefited from the construction of various types of vessels with financial assistance.
Action Required: Monitor the rollout of SBFAP 2.0 for potential opportunities to modernize or expand their fleets.
Coastal Regions:
Impact: Benefit from the economic activity generated by shipbuilding in their regions.
Action Required: Support and facilitate shipbuilding activities to maximize local economic benefits.
Key Entities Referenced
Ministry of Ports, Shipping and Waterways: The Indian government ministry responsible for ports, shipping, and waterways.
Shipbuilding Financial Assistance Policy (SBFAP): A financial assistance policy by the Indian government to promote shipbuilding.
SBFAP 2.0: The proposed revised version of the Shipbuilding Financial Assistance Policy.
Sarbananda Sonowal: The Minister of Ports, Shipping and Waterways.
Cochin Shipyard Limited: A public sector shipyard in Kochi, Kerala, India.
Garden Reach Shipbuilders and Engineers Limited: A public sector shipyard in Kolkata, West Bengal, India.
Goa Shipyard Limited: A public sector shipyard in Vasco da Gama, Goa, India.
COVID pandemic: The global pandemic that affected the shipbuilding industry.
GOVERNMENT OF INDIA
MINISTRY OF PORTS, SHIPPING AND WATERWAYS
LOK SABHA
UNSTARRED QUESTION NO. 964
ANSWERED ON 25.07.2025
SHIPBUILDING FINANCIAL ASSISTANCE POLICY
964. SHRI G M HARISH BALAYOGI:
SHRI LAVU SRI KRISHNA DEVARAYALU:
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 both public and private shipyards are eligible under the proposed Shipbuilding
Financial Assistance Policy (SBFAP) 2.0, if so, the details of types of vessels to be covered
under SBFAP 2.0;
(b) the number and type of ships constructed along with the financial assistance received
by individual shipyards under the previous policy;
(c) whether shipyards that benefited from the earlier scheme secured any export orders, if
so, the details thereof;
(d) whether the Government has assessed the reasons for limited uptake of the earlier
scheme, if so, the details thereof;
(e) whether the revised policy includes measures to incentivize technological upgradation,
automation and domestic sourcing of materials to enhance the global competitiveness of
Indian shipyards and if so, details thereof and if not, the reasons thereof;
(f) the current status of Cabinet approval for SBFAP 2.0 and the expected timeline for its
rollout; and
(g) the steps being taken to promote shipbuilding in underserved coastal regions?ANSWER
MINISTER OF PORTS, SHIPPING AND WATERWAYS
(SHRI SARBANANDA SONOWAL)
(a, e & f) The policy is yet to be approved.
(b, c, d & g) Ship Building financial assistance of Rs 499.61 crore has been disbursed as
financial assistance for 177 vessels. Shipyard wise number of vessels financed under the
SBFAP is given below:
Number of ships
financed under
Name of the shipyard SBFAP
AH Wadia Boat Builders 1
AC Roy & Company 4
AC Roy Shipbuilders Pvt. Ltd. 23
Atreya Shipyard Private Limited 4
Chowgule& Company Private Limited 14
Cochin Shipyard Limited 22
Dempo Shipbuilding and Engineering Private Limited 1
Garden Reach Shipbuilders and Engineers Limited 1
Goa Shipyard Limited 4
MandoviDrydocks 42
Praka Engineering Shipyard 2
San Marine 1
Sembmarine Kakinada Limited 2
Shoft Shipyard Private Limited 26
Sunrich Ship Management Private Limited 1
Synergy Shipbuilders 3
Titagarh Wagons Limited 2
Udupi Cochin Shipyard Limited 5
Victoria Shipbuilding and Engineering LLP 1
Vijai Marine Services 15
Waterways Shipyard Private Limited 1
Zuari Shipyard Private Limited 2Vessels like 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, Auto barge self propelled, jack-up barge and self
elevating platform have been delivered by Indian shipyards have and subsequently
received financial assistance under the SBFAP. All the shipyards are located in coastal
regions or in near coastal regions.
142 number of export vessels have been granted in-principle approvals under the
SBFAP. Of which, 19 ships have been delivered by the shipyards and have subsequently
received financial assistance. These ships have been exported to several European
countries, UAE, Guyana, Mauritius and others.
The SBFAP faced the following hurdles in its implementation: -
Shipbuilding is a long gestation industry and each ship takes time to be
constructed.
COVID pandemic also affected the shipbuilding industry.
The amount of financial assistance released has increased from Rs 29 Cr in
2018-19 to Rs 90 Cr and Rs 137 Cr in 2023-24 & 2024-25 respectively.
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