The Government of India has approved an $8 billion budget package to be spent on reviving and expanding the domestic shipbuilding and ship repair ecosystem, the government said in a statement on Friday, September 26.
The fiscal package is structured in four main areas - strengthening domestic shipbuilding capacity, creating long-term financing channels, facilitating the expansion of shipyards, and promoting policy, tax, and skills development reforms.
The key point is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with the support of the corps in the amount of $2.8 billion. The scheme will also include a credit note for the dismantling of the vessel with a distribution of $451 million.
A National Shipbuilding Mission will be established to coordinate the agenda. The government also approved the creation of a $2.8 billion Shipping Development Fund (MDF) designed to provide long-term financial support to shipbuilding.
In addition, the Shipbuilding Development Scheme (SBDs) with a cost of $2.25 billion will be aimed at expanding the domestic shipbuilding capacity to 4.5 million gross tonnage per year, supporting mega-shipbuilding clusters, expanding infrastructure, creating an Indian Center for Ship Technology at the Indian Maritime University and providing risk coverage, including insurance support for shipbuilding projects
