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GOVERNMENT OF INDIA
MINISTRY OF PORTS, SHIPPING AND WATERWAYS
LOK SABHA
UNSTARRED QUESTION NO. 3490
ANSWERED ON 13.03.2026
SHIPBUILDING FINANCIAL ASSISTANCE POLICY
3490. SHRI PRAVEEN PATEL:
SHRI KOTA SRINIVASA POOJARY:
SMT. POONAMBEN HEMATBHAI MAADAM:
SHRI AMAR SHARADRAO KALE:
DR. SANJAY JAISWAL:
SHRI HARIBHAI PATEL:
SHRI JANARDAN MISHRA:
Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state:
प(cid:7275)न, पोत प(cid:7407)रवहन और जलमाग (cid:6981) म(cid:7074)ं ी
(a) the progress achieved under the Shipbuilding Financial Assistance Policy,
including provision of credit guarantees and Viability Gap Funding (VGF) to Indian
shipyards;
(b) the number of contracts awarded under the said Policy;
(c) the total order book value generated and the types of vessels covered thereunder;
(d) the financial assistance disbursed so far, including the number of shipyards that
have availed benefits under the said Policy;
(e) whether the Government has made any assessment of the impact of the said Policy
on revival of domestic shipbuilding, employment generation and enhancement of global
competitiveness of the country in the maritime sector; and
(f) if so, the details of the findings thereof?
ANSWER
MINISTER OF PORTS, SHIPPING AND WATERWAYS
(SHRI SARBANANDA SONOWAL)
(a) to (d) Under the Shipbuilding Financial Assistance Policy (SBFAP), a total of 288
contracts worth ₹19,748 crore, covering 456 vessels, have received in-principleapproval till date. The type 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.
As of now, total financial assistance amounting to ₹620.57 crore has been
disbursed to 23 shipyards for the construction and delivery of 204 vessels.
Additionally, Government of India 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.
(e) to (f) An assessment of the shipbuilding sector through a third party was conducted
in 2024. The report highlighted 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 & technology limitations, etc. To
address these challenges, Government of India, in September 2025, approved a
shipbuilding package including Shipbuilding Financial Assistance Scheme (SBFAS),
Maritime Development Fund (MDF) and Shipbuilding Development Scheme (SBDS) to
enhance India’s global competitiveness in shipbuilding and maritime sector .
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