Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)

Core Update

The Ministry of Ports, Shipping and Waterways notified operational guidelines for SBFAS and SbDS with a combined outlay of ₹44,700 crore.

Shipbuilding Financial Assistance Scheme (SBFAS)

• Corpus: ₹24,736 crore
• Financial assistance: 15–25% per vessel
• Graded support for:
  • Small normal vessels
  • Large normal vessels
  • Specialised vessels
• Incentives for series orders
• Valid till 31 March 2036 (extendable to 2047)

Structural Innovations

• National Shipbuilding Mission
• Shipbreaking Credit Note
  • 40% of scrap value
  • Links recycling with new shipbuilding
• Milestone-based disbursement
• Independent valuation

Shipbuilding Development Scheme (SbDS)

• Outlay: ₹19,989 crore
• Focus: Long-term capacity creation
• Supports:
  • Greenfield shipbuilding clusters
  • Brownfield expansion of shipyards
• Capital support:
  • Greenfield clusters: 100% via 50:50 SPV
  • Brownfield expansion: 25% assistance

Projected Impact

• Shipbuilding projects worth ₹96,000 crore (10 years)
• Capacity target: 4.5 million GT per annum by 2047

UPSC Relevance

• GS-III: Infrastructure, maritime security, manufacturing

Prelims Trap Alert

⚠️ SbDS ≠ subsidy per vessel. SBFAS includes shipbreaking credit linkage.

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