Lok Sabha Question No. 3528 (UNSTARRED), answered on 2026-03-13
Subject: Shipbuilding  Companies in Maharashtra
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Dr. Amol Ramsing Kolhe, Smt. Supriya Sule, Prof. Varsha Eknath Gaikwad

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

## LOK SABHA UNSTARRED QUESTION NO. 3528

ANSWERED ON 13.3.2026

## SHIPBUILDING COMPANIES IN MAHARASHTRA

3528. PROF. VARSHA EKNATH GAIKWAD: DR. AMOL RAMSING KOLHE: SMT. SUPRIYA SULE:

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

## पȅन , पोत पįरवहन और जलमागŊ मंũी

(a) whether shipbuilding and ship-repair companies are eligible to avail multiple Central incentives simultaneously, including the Shipbuilding Financial Assistance Policy, Ship

Repair Cluster Development in Maharashtra, if so, the details thereof; (b)  whether  uniform  eligibility  and  prioritisation  guidelines  are  put  in  plan  to  avail  the said incentive, if so, the details thereof; (c) the number of shipyards that have availed more than one incentive and the quantum of assistance received in the said State during last three years; (d)  whether benefits are disproportionately cornered by a few large players, if so, the details thereof; (e)  whether  any  independent  assessment  has  been  conducted  to  measure  actual improvements in shipbuilding capacity, exports and employment in coastal districts such as Mumbai, Raigad and Ratnagiri in Maharashtra, if so, the details thereof; (f)  the  total  number of companies that have received multiple incentives and cases of overlap or duplication identified across the country, State-wise including Maharashtra; and (g) the steps taken to ensure transparency, prevent misuse, reduce procedural delays and ensure fair competition and meaningful participation of small and medium shipyards

- in Maharashtra?

## ANSWER

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

(a)  to  (g)  Government  of  India  approved  the  Shipbuilding  Financial  Assistance  Policy (SBFAP) in the year 2016 under which the shipbuilding and ship-repair companies in India are  eligible  to  avail  assistance  for  the  vessel  building  orders  executed  by  them. This scheme is available till 31 st March 2026.

Further,  an  assessment  of  the  shipbuilding  sector  through  a  third  party  was conducted  in  2024.  The  report  highlighted  high  employment  multiplier  of  6.4  of shipbuilding  sector  and  a  huge  potential  for  generating  both  direct  and  indirect employment. It also highlighted the 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  comprehensive  shipbuilding  package  including  Shipbuilding  Financial Assistance  Scheme  (SBFAS)  and  Shipbuilding  Development  Scheme  (SBDS)  to enhance India's global competitiveness in shipbuilding and maritime sector.

These  schemes  are  open  to  all  shipyards  in  India.  The  Government  notifies detailed scheme guidelines and eligibility criteria to  ensure transparency, reduction of procedural delays and to ensure fair and meaningful participation of all shipyards. The Government undertakes stakeholder consultations with industry to facilitate participation of shipyards, including small and medium shipyards before releasing guidelines.

The guidelines for the SBFAS and SBDS have been issued in December 2025 and the  shipyards  have  started  submitting  applications  under  the  said  schemes.  The approvals  for  financial  assistance  under  these  guidelines  are  yet  to  be  issued. Therefore, as of  now  shipyards  have  availed  of  assistance  for vessel building orders only under SBFAP scheme. Further, a shipyard can avail financial assistance for vessel building orders under either SBFAP or  SBFAS. Additionally, the shipyard can avail financial assistance for capacity expansion under SBDS.

Applications  under  SBFAP,  SBFAS and SBDS are applied on  an online  portal ensuring transparency, digitization and faster processing of applications.

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