New Delhi, 04 August (H.S.): The Central Government has implemented the Shipbuilding Financial Assistance Scheme (SBFAS) with an outlay of Rs 24,736 crore to make Indian shipyards globally competitive and transform the country into a global hub for shipbuilding. In addition, a Maritime Development Fund (MDF) worth Rs 25,000 crore has been established to provide long-term financial support to the shipbuilding and maritime sectors.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal informed the Rajya Sabha in a written reply on Tuesday that the SBFAS was introduced to reduce cost-related challenges faced by Indian shipyards and enhance their competitiveness. The operational guidelines for the scheme were issued on December 26, 2025.

He said that the Rs 25,000 crore Maritime Development Fund comprises a Maritime Investment Fund (MIF) of Rs 20,000 crore and an Interest Incentivisation Fund (IIF) of Rs 5,000 crore. The Central Government will have a 49 per cent stake in the MIF, which will promote equity investments in the maritime sector. The IIF will help reduce the effective cost of loans for shipyards.

The guidelines for the Maritime Development Fund were issued on February 20, 2026, while SBI Ventures Limited was appointed as the fund manager for the MIF on May 26, 2026.

Sonowal said that the National Shipbuilding Mission (NSBM) has been established to monitor the effective implementation of various shipbuilding-related schemes. The inter-ministerial body will oversee the execution of the Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme.

He added that under the Shipbuilding Development Scheme, in-principle approval has been granted for developing greenfield shipbuilding clusters in Andhra Pradesh, Gujarat, and Tamil Nadu. Additionally, three brownfield projects aimed at expanding the capacity of existing shipyards across the country have also been approved.

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Hindusthan Samachar / Jun Sarkar