Lok Sabha Question No. 4617 (UNSTARRED), answered on 2026-03-20
Subject: Shipbuilding Development Scheme
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Shri Krishna Prasad Tenneti, Shri Rajesh Naranbhai Chudasama, Shri Dhairyasheel Sambhajirao Mane, Ms Kangna Ranaut, Dr. Sanjay Jaiswal, Shri Sudheer Gupta, Shri Ravindra Shukla Alias Ravi Kishan, Shri Ramesh Awasthi, Shri Lavu Sri Krishna Devarayalu, Shri Chavan Ravindra Vasantrao

## GOVERNMENT OF INDIA

## MINISTRY OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO.4617

ANSWERED ON 20.03.2026

## SHIPBUILDING DEVELOPMENT SCHEME

## 4617. SHRI RAJESH NARANBHAI CHUDASAMA:

MS KANGNA RANAUT:

SHRI SUDHEER GUPTA:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI LAVU SRI KRISHNA DEVARAYALU:

SHRI CHAVAN RAVINDRA VASANTRAO:

SHRI RAMESH AWASTHI:

SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:

DR. SANJAY JAISWAL:

SHRI KRISHNA PRASAD TENNETI:

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

## पȅन , पोत पįरवहन और जलमागŊ मंũी

- (a)  the  objectives  and  key  features  of  the  Shipbuilding  Development  Scheme (SbDS) notified by the Government;
- (b)  the  manner  in  which  greenfield  shipbuilding  clusters  is  likely  to  be  developed, including the funding pattern between the Centre and the States;
- (c)  the  details  of  the  Credit  Risk  Coverage  Framework  introduced  under  the  said Scheme and its expected impact on improving project bankability; and
- (d) the steps taken to establish the India Ship Technology Centre under the Indian Maritime University to promote research, innovation and skill development?

## ANSWER

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

(a) to (d) The Shipbuilding Development Scheme (SbDS) aims to strengthen India's domestic shipbuilding capacity  and capability  by expanding  domestic output to 4.5 million Gross Tonnage (GT) annually by 2047. The key features includes greenfield cluster development, brownfield capacity expansion, shipbuilding risk coverage and capability development of the Indian shipbuilding sector through India Ship Technology Centre (ISTC).

The green field shipbuilding clusters are to be implemented 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  Credit  Risk  Coverage  Framework  introduced  under  the  Shipbuilding Development  Scheme  aims  to  provide  financial  protection  to  Indian  shipyards against key risks associated with shipbuilding contracts and vendor dependencies. It comprises  coverage  for  risks  such  as  pre-shipment,  post-shipment  and  vendordefault risks  faced  by  the shipyards and  lenders.  This mechanism helps to reduce the  perceived  credit  risk  for  banks  and  financial  institutions,  thereby  improving  the bankability  of  shipbuilding  projects,  enabling  easier  access  to  long-term  financing and encouraging greater private investment in the sector.

An  industry  representative  committee,   comprising  of  relevant  stakeholders including Indian Maritime University, public  and private shipyards, Shipyards Association  of  India  (SAI),  Indian  Marine  Designers  Association  (IMDA), has  been set up with a mandate to establish ISTC as section-8 company.  The mandate of the ISTC  is  to  help  in  developing  India's  capabilities  related  to  shipbuilding  design, training of manpower, R&D in shipbuilding and co-ordination for testing facilities.

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