Government Approves 288 Shipbuilding Contracts Worth ₹19,748 Crore
In a significant boost to India’s maritime sector, the government has granted in-principle approval for 288 contracts under the Shipbuilding Financial Assistance Policy (SBFAP). These contracts, valued at ₹19,748 crore, encompass the construction of 456 vessels. The announcement was made by Sarbananda Sonowal, the Union Minister of Ports, Shipping, and Waterways, on Saturday. This initiative aims to enhance the country’s shipbuilding capabilities and stimulate economic growth within the maritime industry.
The financial assistance provided under this policy has already reached ₹620.57 crore, benefiting 23 shipyards involved in the construction and delivery of 204 vessels. The types of vessels included in these contracts range from tugs and bulk carriers to oil tankers and passenger ferries. This diverse portfolio reflects the government’s commitment to strengthening various segments of the maritime sector.
Strategic Initiatives to Enhance Shipbuilding Capacity
In September 2025, the government introduced the Shipbuilding Development Scheme (SBDS), which includes provisions for credit risk coverage and viability gap funding. This scheme aims to support existing Indian shipyards in expanding their production capacities. Recently issued guidelines will facilitate the implementation of this scheme, further bolstering the shipbuilding sector.
A third-party assessment conducted in 2024 highlighted the shipbuilding sector’s potential for job creation, noting a high employment multiplier of 6.4. However, the report also identified several challenges hindering growth, such as limited domestic demand, high financing costs, and technological constraints. To address these issues, the government has rolled out the SBFAS and the Maritime Development Fund (MDF), alongside the SBDS, to enhance India’s competitiveness in the global shipbuilding market.
The SBFAS, with a total corpus of ₹24,736 crore, will provide financial assistance ranging from 15% to 25% per vessel, depending on the category. Over the next decade, this initiative is expected to support shipbuilding projects worth approximately ₹96,000 crore, thereby stimulating domestic manufacturing and generating employment across the maritime value chain.
Indian shipyards secured orders worth Rs 10,500 cr for building ships in last 8 years
Future Outlook for India’s Maritime Sector
The government’s recent notification of operational guidelines for two major shipbuilding initiatives, with a combined outlay of ₹44,700 crore, underscores its commitment to strengthening domestic shipbuilding capabilities. These initiatives are designed to improve India’s global competitiveness in the maritime sector, ensuring that the country can meet both domestic and international demands effectively.
As the shipbuilding sector continues to evolve, the government’s proactive measures aim to create a robust framework that not only addresses current challenges but also positions India as a key player in the global maritime industry. The focus on financial assistance, capacity building, and technological advancement is expected to pave the way for a thriving shipbuilding ecosystem in the years to come.
