Lok Sabha Question No. 3490 (UNSTARRED), answered on 2026-03-13
Subject: Shipbuilding Financial Assistance Policy
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Dr. Sanjay Jaiswal, Shri Janardan Mishra, Shri Haribhai Patel, Shri Amar Sharadrao Kale, Smt. Poonamben Hematbhai Maadam, Shri Kota Srinivasa Poojary, Shri Praveen Patel

## 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:

## पᱫन , पोत पᳯरवहन और जलमागᭅ मंᮢी

(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-principle approval 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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