Pillar 4 — Enabling Reforms
Legal, Policy & Process Reforms
The regulatory backbone - five major legislations passed by Parliament in 2025, demand-side aggregation via a 437-vessel fleet plan, and an expanded, digital-first maritime administration.
Legal & Policy Reforms
Six Reform Threads
Right of First Refusal (RoFR)
Local demand aggregation - preference to Indian shipyards for domestic vessel procurement. Backing this: ₹1,00,000 Cr investment by SCI for fleet expansion (200+ vessels) by 2047, adding 10 Mn GT, plus ₹46,800+ Cr of shipbuilding orders from Oil & Gas PSUs.
Restrictions on Old Imports
Restrictions on acquisition of vessels over 20 years old, and on operation of vessels over 25 years old.
Infrastructure Status
Large commercial ships (>1,500 GT if built, owned & flagged in India; >10,000 GT if India-owned & flagged) form part of the Infrastructure Harmonised Master List (IHML) post-September 2025.
Maritime Financing
GIFT City institutionalised as a centre for ship leasing, with fiscal benefits - 10-year tax holidays, GST exemptions, and capital gains tax waivers.
Indigenisation of Ancillary Equipment
Make I/II schemes for shipbuilding OEMs - for example, propulsion engines.
Legal & Policy Reforms
Five major legislations passed by Parliament in 2025.
Envisaged benefits: Improves Ease of Doing Business in the Indian maritime sector; creates sustainable demand for the Indian shipbuilding industry; and eases access to maritime financing.
Structural Enhancements - MS Act 2025 & CSA 2025
Expanded Jurisdiction
Covers merchant vessels, fishing boats, offshore units, submersibles, drones & emerging marine tech
Inclusive Ownership
NRIs, LLPs & foreign-chartered vessels - Indian ownership threshold eased from 100% to 51%
Environmental Governance
Marine pollution response, ballast water management, port reception facilities
MLC Compliance
Full Maritime Labour Convention rights for all Indian seafarers, including those on foreign-flagged vessels
Digital-First Administration
Shift from manual to fully digital platforms; nodal authorities for incident response
4-Pillar Implementation
DGMA is the implementing agency for SBFAS & SbDS
DGMA transformation: The Directorate is being restructured into 4 wings - Maritime Development & Infrastructure (MDI), Administration & Policy Coordination, Maritime Environment & Statutory Services, and Maritime Safety & Security - with a new MDI wing housing the shipbuilding cell and coastal shipping branch, scaling to 82 technical posts.
Demand Aggregation - Fleet Plan
Domestic Fleet Acquisition Plan
Alongside supply-side support, India is creating demand. The Domestic Fleet Acquisition Plan, launched by the Prime Minister, is a nationally-backed programme giving long-term order visibility to shipowners, financiers, shipyards and global partners. The Demand Aggregation plan, launched in December 2025, marks a decisive acceleration in India's shipbuilding push.
437
Vessels Planned
~19 Mn GT
₹2.2 Lakh Cr
Total Investment
~₹22,000 Cr identified near-term
62
Vessels - 1-Year Plan
Worth ~₹51,300 Cr, ~2.85 Mn GT
28-38
Tenders Floated
Fleet Expansion by Programme
| Organisation / Programme | Vessels Planned | Investment (₹ Cr) | Vessel Type | 1-Yr Plan | Tender Floated |
|---|---|---|---|---|---|
| Oil & Gas PSUs - Fleet Acquisition Plan (10 yrs) | 59 (34 SCI & OG JV; 25 ONGC) | 47,800 | PSVs, Tugs, LPG & Crude, Product & MR Tankers | 26 | 14 |
| SCI - Business Plan (2047) | 216 bulkers/tankers/offshore | 1,00,000 | MR Tankers | 2 | 2 |
| SCI - Container Fleet (BCSL, 2047) | 51 container vessels | 60,000 | Container Vessels | 18 | - |
| Major Ports - Domestic Green Tug Programme (10 yrs) | 100 green tugs | 12,000 | Green Tugs | 12 | 12 |
| DCI - Fleet Expansion (5 yrs) | 11 dredgers | 3,775 | Dredgers | 4 | - |
| Total | 437 vessels | 2.2 lakh Cr (19 Mn GT) | - | 62 | 28 |
Investment figures in ₹ crore unless noted. Gross tonnage basis varies by source entity (Oil & Gas PSU tonnage in GT; SCI & BCSL tonnage from SCI's Board-approved plan, Oct 2025). 50% of the 328 SCI/BCSL/Oil-PSU vessels are targeted for procurement within the first 5 years from 2026.
1-Year Procurement Plan - Current Status
| Organisation / Programme | Stakeholder | Vessel Type | Qty | EOI/Tender Floated |
|---|---|---|---|---|
| Oil & Gas PSUs - Fleet Acquisition Plan | ONGC | Platform Support Vessels, Anchor Handling Tugs | 12 | 4 |
| Oil & Gas PSUs - Fleet Acquisition Plan | SCI JV with Oil PSUs | LPG Carriers, Crude Carriers, Product/MR Tankers | 14 | 14 |
| SCI - Business Plan | SCI | MR Tankers | 2 | 2 |
| BCSL - Container Fleet | SCI JV with CONCOR, Major Ports | Container Vessels | 18 | 6 |
| Domestic Green Tug Programme | Major Ports | Green Tugs | 12 | 12 |
| DCI - Fleet Expansion | Dredging Corporation | Dredgers | 4 | - |
| Total | 62 | 38 | ||
Financial Incentives Lifecycle
Incentives Across the Shipbuilding Lifecycle
Attractive financial incentives span the entire shipbuilding lifecycle to augment project economics, backed by an approved budget of ₹69,725 Cr.
Pre-Operations Setup
SBDS: nominal lease rental on ready plug-and-play land parcels for the yard, plus common marine infrastructure (breakwaters, dredging & reclamation, internal infra and others)
Post-Operations Setup
SBFAS: 15-25% financial assistance on every ship built · SBDS: Pre-Shipment, Post-Shipment & Vendor Default Insurance · SBDS: 25% capital assistance to existing yards for brownfield expansion · MDF-MIF: loans for long-term capital deployment · Ship infrastructure status: 10-year tax holiday via GIFT City · MDF-IIF: interest incentive of up to 3% · Additional state-government incentives ~20-25% of capex (capital subsidy, SGST reimbursement, etc.)
Additional Demand-Side Outlay
Government-stimulated demand for ~437 vessels under the Domestic Fleet Acquisition Plan
