Government has provided additional incentives to encourage domestic shipyards to develop fuel-efficient and technologically advanced vessels as part of its ambitious plans to transform the country’s shipping industry. The details are presented below:

Shipbuilding financial assistance policy was amended in August 2023, to include ‘flat 30% financial assistance for vessels where main propulsion is achieved by means of green fuels such as Methanol/Ammonia/Hydrogen fuel cells etc’. This amendment also included ‘flat 20% financial assistance for vessels fitted with fully electric or hybrid propulsion’.

As per the Maritime AmritKaal Vision (MAKV 2047), India aspires to be in the top 5 countries in commercial shipbuilding by 2047. Further, to promote "Make in India" policy and to support shipbuilding industry in India, Ministry has brought in Shipbuilding Financial Assistance Policy (SBFAP) scheme for Indian shipyards to procure orders from domestic as well as international market and to be competitive in international market for securing global orders. The scheme offers financial assistance to Indian Shipyards for shipbuilding contracts signed between April 1, 2016 and March 31, 2026 with rate of financial assistance starting from 20% in 2016 and diminishing to 11% in 2026. Till date, 45 shipyards have registered, and 19 shipyards have utilized the scheme by availing financial assistance. Further, an amount of Rs. 385.16 crore has been released towards construction and delivery of 144 vessels.

This information was given by the The Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal in a written reply in Lok Sabha today.

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