Government Approves 288 Shipbuilding Contracts Valued at Rs 19,748 Crore
Synopsis
On March 14, the Indian government revealed the approval of 288 shipbuilding contracts worth ₹19,748 crores under the Shipbuilding Financial Assistance Policy. This initiative aims to enhance the shipbuilding sector's capacity and create jobs while addressing existing challenges.
Key Takeaways
288 contracts approved under SBFAP.
Contracts worth Rs 19,748 crore .
Financial assistance of Rs 620.57 crore already disbursed.
Variety of vessels included from tugs to passenger ferries.
New initiatives aim to strengthen India’s shipbuilding sector .
New Delhi, March 14 (NationPress) The government announced on Saturday that a total of 288 contracts amounting to Rs 19,748 crore, encompassing 456 vessels, have received preliminary approval under the Shipbuilding Financial Assistance Policy (SBFAP).
Additionally, financial assistance totaling Rs 620.57 crore has been allocated to 23 shipyards for the construction and delivery of 204 vessels, as stated by Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal.
The range of vessels included covers tugs, general cargo vessels, bulk carriers, oil tankers, crane pontoons, heavy deck cargo vessels, RO-RO passenger vessels, crew boats, deck loading crafts, coastal research vessels, modular pontoons, passenger catamarans, passenger-cum-motorcycle ferries, passenger ferries, landing crafts, jack-up barges, and self-elevating platforms.
In September 2025, the government approved the Shipbuilding Development Scheme (SBDS), which includes provisions for credit risk coverage to Indian shipyards and viability gap funding in the form of capital support to existing Indian shipyards for expanding production capacity.
The guidelines for these initiatives have recently been published, the minister noted in a written response to the Lok Sabha.
A third-party assessment of the shipbuilding sector was conducted in 2024.
The report underscored the shipbuilding sector’s impressive employment multiplier of 6.4, alongside significant potential for creating both direct and indirect jobs.
Moreover, it identified several barriers hindering the growth of shipbuilding in India, including insufficient domestic demand, high financing costs, and limitations in capacity and technology.
To tackle these challenges, the government has approved SBFAS, Maritime Development Fund (MDF), and SBDS to bolster India’s global standing in shipbuilding and the maritime industry.
The government has recently issued operational guidelines for two key shipbuilding initiatives with an outlay of Rs 44,700 crore, aimed at enhancing India's domestic shipbuilding capabilities and boosting global competitiveness.
Under SBFAS, which has a total corpus of Rs 24,736 crore, the government will extend financial assistance ranging from 15% to 25% per vessel, depending on the vessel type.
Over the upcoming decade, SBFAS is anticipated to back shipbuilding projects valued at approximately Rs 96,000 crore, fostering domestic manufacturing and generating employment throughout the maritime value chain.
Point of View
The approval of these contracts marks a strategic move by the Indian government to strengthen domestic shipbuilding capabilities. This initiative not only promises economic growth but also aims to tackle existing challenges in the sector, thus fostering employment and enhancing global competitiveness.
NationPress
7 May 2026
Frequently Asked Questions
What is the total value of the approved contracts?
The total value of the approved contracts is ₹19,748 crores.
How many vessels are covered under these contracts?
A total of 456 vessels are covered under the approved contracts.
What financial assistance has been disbursed so far?
Financial assistance amounting to ₹620.57 crores has been disbursed to 23 shipyards.
What types of vessels are included in the initiative?
The initiative includes various types of vessels such as tugs, bulk carriers, oil tankers, and passenger ferries.
What is the Shipbuilding Development Scheme (SBDS)?
SBDS is a scheme approved by the government for credit risk coverage and viability gap funding to enhance production capacity in Indian shipyards.
