Lok Sabha Question No. 4758 (UNSTARRED), answered on 2026-03-20
Subject: Revival of Shipbuilding Industry
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Shri Rao Rajendra Singh

## GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4758

ANSWERED ON 20.03.2026

## REVIVAL OF SHIPBUILDING INDUSTRY

4758. SHRI RAO RAJENDRA SINGH:

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

## पȅन , पोत पįरवहन और जलमागŊ मंũी

(a)  whether  the  Government  has  reviewed  the  progress  made  towards  enhancing India's  share  in  global  shipbuilding  and  ship  repair  following  the  announcement  of measures  under  the  Union  Budget  2025-26  and  in  alignment  with  Maritime  India Vision 2030 and Maritime AmritKaal Vision 2047; (b) if so, the details thereof; (c) whether the Government has taken steps to revamp the Shipbuilding Financial Assistance Policy  and to  operationalize the  proposed  Maritime Development Fund with a corpus of Rs. 25,000 crore and if so, the details thereof; (d)  whether  the  Government  proposes  to  develop  shipbuilding  clusters  in  the country with supporting infrastructure, skilling initiatives and technology support; and (e) if so, the details thereof along with the measurable outcomes achieved in terms of  private  investment  attracted,  orders  secured  by  Indian  shipyards,  employment generated  and  capacity  augmentation  in  the  shipbuilding  and  ship  repair  sector

- during the last two years?

## ANSWER

## MINISTER OF PORTS, SHIPPING AND WATERWAYS (SHRI SARBANANDA SONOWAL)

(a) to (e) The Government has reviewed the India's Shipbuilding sector following the announcement of measures under the Union Budget 2025-26 and adopted a 4-pillar strategy to revitalize shipbuilding sector. The Government has accordingly approved a  comprehensive  package  of  ₹  69,725  crore  to  strengthen  domestic  shipbuilding capacity,  maritime  financing  and  skilling.The  key  components  of  the  shipbuilding package include:

- i. Shipbuilding  Financial  Assistance  Scheme  (SBFAS),  an  enhancement  of Shipbuilding  Financial  Assistance  Policy  (SBFAP),  with  outlay  of  ₹  24,736

crore  to  address  cost  disadvantages  of  Indian  shipyards  vis-a-vis  global shipyards;

- ii. Maritime  Development  Fund  (MDF)  corpus  of  ₹  25,000  crore  for  providing long term financing support to shipbuilding and maritime sector comprising a Maritime Investment Fund of ₹ 20,000 crore and Interest Incentivisation Fund of ₹ 5,000 crore;
- iii. Shipbuilding  Development  Scheme  (SbDS)  with  ₹19,989  crore  outlay  to expand  Indian  shipbuilding  output  capacity  to  4.5  million  Gross  Tonnage annually by setting up greenfield shipbuilding clusters and capacity expansion of the existing shipyards. These targets have been set to position India as a competitive global shipbuilding force in line with vision contained in Maritime India Vision 2030 and Maritime AmirtKaal Vision 2047 documents.

The scheme guidelines to operationalize SBFAS and SbDShave been issued on 26.12.2025. The guidelines for MDF have also been issued on 20.02.2026.

Further, the Government proposes to develop greenfield shipbuilding clusters under  SBDS  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  SbDS  also  has  provision  to establish  India  Ship  Technology  Centre  (ISTC)  for  overall  development  of  the capabilities of Indian shipbuilding sector including ship design, Research & Development, skill development, software, etc.

From April 2024 to February 2026, in-principle approvals have been given to the tune of about ₹ 1,800 crore of financial assistance for a cumulative vessel value of  about  ₹  12,000  crore.  Further,  given  the  high  employment  multiplier  of  6.4  in shipbuilding  industry,  the  financial  assistance  given  has  catalysed  generation  of large number of direct as well as indirect employment.

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