Lok Sabha Question No. 964 (UNSTARRED), answered on 2025-07-25
Subject: Shipbuilding Financial Assistance Policy
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Shri Lavu Sri Krishna Devarayalu, Shri G M Harish Balayogi

## 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: पȅन , पोत पįरवहन और जलमागŊ मंũी

- (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:

| Name of the shipyard                               |   Number of ships financed under 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                     |                                      2 |

Vessels 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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