Component 1: Financial Assistance

5. Objective: Provides financial support to Indian shipyards to bridge cost disadvantages and promote competitiveness.

5. Incentive Structure:

• 15% assistance for vessels valued below ₹100 crore.
• 20% assistance for vessels valued above ₹100 crore.
• 25% assistance for green, hybrid, or specialized vessels.

5. Domestic Value Addition: Minimum 30% domestic value addition required to qualify for incentives, encouraging local manufacturing.

5. Financial Allocation: Total outlay of ₹20,554 crore approved, valid until March 2036

Component 2: Ship-breaking Credit Note

5. Incentive Value: Credit note worth 40% of the vessel’s scrap value, applicable when scrapped at an Indian shipyard

5. Utilization: Can be redeemed against the cost of building a new vessel in an Indian shipyard

5. Flexibility: Notes are stackable, transferable, and valid for 3 years

5. Budget Allocation: Total outlay of ₹4,001 crore for the scheme

Component 3: National Shipbuilding Mission

5. Mission Leadership: Drive and oversee national shipbuilding initiatives across sectors

5. Fund Management: Evaluate applications, verify claims, and ensure timely fund disbursement

5. Procurement Coordination: Aggregate demand and enable structured, centralized procurement processes

5. Global Partnerships: Identify and facilitate foreign collaborations to strengthen domestic capabilities

5. Scheme Tenure: 10-year duration, with committed liabilities honored beyond the scheme period

Component 1: Maritime Investment Fund

5. Fund Corpus: An initial allocation of ₹20,000 crore.

5. Funding & Investors: Equity-based financing with additional investor contributions will anchor the Maritime Investment Fund’s capital structure.

5. Strategic Focus Areas:

• Expansion of Indian shipping capacity (tonnage).
• Development of shipyards, ship repair facilities, and supporting industries.
• Strengthening port and related infrastructure.
• Promoting inland and coastal water transport to improve modal share.

5. Financial Structure: Designed as a blended finance model to mobilize private sector investment alongside public funding.

• 49% capital from the government at concessional rate.
• 51% commercial capital sourced from multilateral lenders, port authorities along with sovereign funds.

Component 2: Interest Incentivization Fund

5. Fund Corpus: ₹5,000 crore allocated for the initiative

5. Scheme Duration: 10 years, valid up to March 2036

5. Incentive Structure:

• Interest incentive of up to 3%
• Offered to banks and financial institutions
• Applicable on loans extended to Indian shipyards

5. Implementation: To be coordinated through designated implementing agencies.

Shipbuilding Development Scheme

5. Capital support for shipbuilding clusters:

• Greenfield cluster: ₹9,930 crore
• Brownfield capacity expansion: ₹8,261 crore

5. Shipbuilding risk coverage: ₹1,443 crore

5. Capability development initiatives: ₹305 crore

5. Total corpus: ₹19,989 crore

5. Duration: 10 years (up to March 2036)

Legal, Policy and Process Reforms

5. Infrastructure Status for Large Ships granted on 19^th September 2025 to facilitate access to long-term, low-cost financing.

5. Demand Aggregation through Oil & Gas PSUs aims to build 110+ vessels in India over the next 10 years.

5. Legal Reforms Introduced

• Bills of Lading Act, 2025
• Carriage of Goods by Sea Act, 2025
• Coastal Shipping Act, 2025
• Merchant Shipping Act, 2025
• Indian Ports Act, 2025