India’s shipbuilding sector receives financial safety net through specialised
The Ministry of Ports, Shipping, and Waterways has introduced two new credit risk insurance products to safeguard India’s shipbuilding sector from financial instability caused by payment delays. These specialized policies were unveiled by Union Minister Sarbananda Sonowal on 13 October at the 21st Maritime State Development Council meeting in Mumbai. This marks the council’s inaugural session as a statutory body under the Indian Ports Act, 2025.
Shipbuilding Project Credit Risk Insurance Policy (SbPCP) and Business Credit Shield Policy–Shipbuilders (BCSPS) have been designed to cater to different segments of the shipbuilding industry. The SbPCP, managed by ECGC Ltd, focuses on export-oriented projects, while the BCSPS, provided by The New India Assurance Company Ltd, targets domestic shipbuilding ventures. The government will subsidize insurance premiums and extend direct support to insurers in cases where shipyards file claims.
Under the Shipbuilding Development Scheme, these groundbreaking policies aim to alleviate financial pressure in large-scale ship manufacturing. Minister Sonowal emphasized the importance of these insurance products, noting that a single missed milestone payment could disrupt the entire operations of a shipyard. This safety net against delayed payments and unpredictable global market shifts is crucial for the industry’s stability.
These initiatives are part of the Rs 69,725 crore shipbuilding and maritime package approved by the Union Cabinet in September 2025. This comprehensive package includes the Rs 19,989 crore Shipbuilding Development Scheme, offering risk coverage and insurance support, as well as a Rs 25,000 crore Maritime Development Fund. By addressing the significant risk of payment delays on lengthy, capital-intensive projects spanning multiple years, these policies aim to enhance shipyards’ financial accessibility and competitiveness in securing both domestic and international orders.
Industry experts believe that these insurance products could potentially improve shipyards’ financial capabilities, enabling them to pursue larger projects and expand their market reach. The launch of these credit risk insurance products represents a significant step towards ensuring the financial stability and growth of India’s shipbuilding industry.
