Driving Competitiveness through Policy Support: SBFAS at SAMARTHYA 2026

At SAMARTHYA 2026 – Building Capability, Confidence and Competitiveness in India’s Maritime and Shipbuilding Sector, a detailed presentation on the Shipbuilding Financial Assistance Scheme (SBFAS) was delivered by Shri Ankur Anal, Junior Ship Surveyor-cum-Assistant Director General (Technical), Directorate General of Shipping.

The session, part of Session 3: Industry Outlook & Economics, was chaired by Shri Nebu Oommen, Ship Surveyor-cum-Deputy Director General (Technical), and focused on Pillar I of India’s Four-Pillar Shipbuilding Strategy.

The presentation highlighted SBFAS as a key instrument to address the cost competitiveness gap faced by Indian shipyards, with a total allocation of ₹24,736 crore, comprising:

• ₹20,554 crore towards extension of financial assistance for ships built in India;

• ₹4,001 crore under the Shipbreaking Credit Note, enabling 40% of a ship’s scrap value—when recycled in an Indian yard—to be offset against the cost of a new vessel built in India; and

• Support for establishment of the National Shipbuilding Mission.

Key features discussed included the graded assistance rate structure for non-specialised and specialised vessels, with enhanced incentives for higher-value and specialised ships, as well as domestic content-linked eligibility, promoting deeper indigenisation. Full assistance is available where domestic content exceeds specified thresholds, aligning fiscal support with Atmanirbhar Bharat objectives.

The session emphasised how SBFAS not only improves order viability and market confidence, but also enables a circular shipbuilding ecosystem, integrating shipbuilding and ship recycling while strengthening India’s global competitiveness under MIV 2030 and MAKV 2047.