Pillar 3 — ₹19,989 Cr
Shipbuilding Development Scheme (SbDS)
Capacity and capability development, plus credit risk coverage - the pillar that funds greenfield clusters and brownfield expansions directly. Valid for 10 years, till 31 March 2036.
Five Components of the Scheme
₹9,930 Cr
Greenfield Capacity
Capital support for new greenfield clusters
₹8,261 Cr
Brownfield Expansion
Expand existing shipyards' capacity
₹305 Cr
Capability - ISTC
India Ship Technology Centre
₹1,443 Cr
Credit Risk Cover
Pre/post-shipment & vendor default
₹50 Cr
Administrative
₹45 Cr scheme administration
Period of validity of scheme - 10 years (till 31 March 2036). Total pillar outlay ₹19,989 Cr.
Greenfield Clusters
Five Clusters Across India - Current Status
5
SPVs Formed
5
IPA Granted
Tamil Nadu - Thoothukudi IPA GRANTED
2,050 acres · 2.4 km waterfront · 5 m draft · anchor: HD Hyundai · SPV: SITCOP + VoCPA
In-principle approval has been granted for all five clusters. Structured introductions to any cluster SPV can be facilitated - write to invest.shipbuilding@gov.in.
YOUTUBE EXPLAINER
How India is building world-class greenfield clusters through 50:50 State-Centre SPVs, with 100% central capital assistance for common maritime infrastructure. Watch on YouTube ↗
Cluster Readiness - All Five States
| Readiness | Tamil Nadu | Andhra Pradesh | Gujarat | Maharashtra | Odisha |
|---|---|---|---|---|---|
| Cluster Site | Thoothukudi | Dugarajapatnam | Kucchadi | Dighi | Kendrapara |
| Land Area | 2,050 acres | 3,488 acres | 2,000 acres | 2,000 acres | 2,000 acres |
| Waterfront | 2.4 km | 2.1 km | 2.7 km | 3.0 km | 2.5 km |
| Depth / Draft | 5 m draft | 13-15 m* | 10 m within ~1 km | 14 m* | 12-15 m* |
| SPV Status | SITCOP + VoCPA | APMB + VPA | GMB + DPA | MMB + MbPA | OMB + PPA |
| TEFR Availability | — | — | — | — | — |
| In-Principle Approval | Granted | Granted | Granted | Granted | Granted |
| State Policy | SB Policy | Maritime Policy 2024 | SB/SR Policy | SB/SR Policy 2025 | IPR 2022 |
| Anchor Investor | HD Hyundai | Open | Open | 5+ MoUs signed | Open |
Depth planned post-dredging. In-principle approval has been granted for all five clusters.
Structured introductions to any cluster SPV can be facilitated to advance diligence on the states of your interest - write to invest.shipbuilding@gov.in.
Objective
Develop world-class shipbuilding clusters with shared infrastructure and advanced technologies to enhance competitiveness, drive economic growth and generate jobs - limited to one cluster per state, with preference for states offering land availability, single-window facilitation and maritime policy incentives.
Structure
SPV as a 50:50 JV between Central Govt (or entity) and State Govt (or its entity/agency)
Anchor Shipyard
At least 1 shipyard with minimum annual capacity of 0.5 million GT, achieved within 10 years of commissioning
External Connectivity
Trunk infrastructure facilitated by the Ministries of Road Transport & Railways, and/or the State Government
Eligibility Criteria
Cluster Capacity
~1.2 million GT/annum · ~2 km waterfront · ~1,000 acres for shipyards + ~1,000 acres for ancillary industry
Anchor Shipyard(s)
MoU with SPV / LoI with Board Resolution; binding undertaking not to repurpose for non-shipbuilding use for 10 years
SPV
Equal representation 50:50 JV; operates as concessionaire charging lease rent from anchor/participants
100% Upfront Grant - Five Eligible Categories
1 · Breakwaters
Tide-independent basins, wave breakers - coastal protection structures
2 · Channel & Basin Development
Capital dredging, land reclamation & area grading, turning basins
3 · Regional Capability Centres
Skill training, R&D, green shipbuilding technology & certification facilities
4 · Common Maritime Assets
Barges, heavy-lift ships, floating cranes, pontoons, tugs & auxiliary craft - registered under the SPV
5 · Internal Infrastructure
Site development, social infra, connectivity (roads/rail), utilities (water, power, drainage, sewage, communication, firefighting)
Land is additionally provided at near-zero value through nominal lease rentals by the State Government.
Roles & Mechanism
Central Government / Entity
- 50% equity contribution
- Facilitates external trunk infrastructure (MRTH / MoR)
State Government / Entity
- 50% equity contribution · land transfer at ₹1
- Last-mile connections, urban infra, single-window clearance
- State incentives & schemes
SPV (50:50 JV)
- Owns & develops land and common maritime infrastructure
- Leases yard parcels & common infra to the anchor at nominal rental for 60+ years
- O&M including lease collection & maintenance dredging
Anchor Investor (Shipyard)
- At least 1 shipyard with ≥0.5 Mn GT annual capacity
- Pays agreed lease rental
- Invests in and operates yard-owned assets
Five coastal states are investor-ready: Tamil Nadu (Thoothukudi - SPV formed by SITCOP + VoCPA, IPA granted, anchor investor HD Hyundai), Andhra Pradesh (Dugarajapatnam - SPV formed by APMB + VPA, IPA granted), Gujarat (Kucchadi - SPV formed by GMB + DPA, IPA granted), Odisha (Kendrapara - SPV formed by OMB + PPA, IPA granted), Maharashtra (Dighi - SPV formed by MMB + MbPA, IPA granted). In-principle approval has been granted for all five clusters.
Brownfield Expansion
Where Brownfield Expansion Is Happening
4
IPAs Granted
₹2,045 Cr to be sanctioned
3
Applications Under Review
₹269 Cr
IN-PRINCIPLE APPROVAL GRANTED (4)
- Titagarh Naval Systems (TNSL) — Falta, West Bengal · ₹516 Cr — IPA Granted
- Swan Defence & Heavy Industries (SDHI) — Pipavav, Gujarat · ₹504 Cr — IPA Granted
- Mat Marine — Kakinada, Andhra Pradesh · ₹105 Cr — IPA Granted
- Cochin Shipyard Limited (CSL) — Vadinar, Gujarat · ₹920 Cr — IPA Granted
APPLICATION SUBMITTED (3)
- Synergy Shipbuilders / N Dock Works Ltd — Mangalore, Karnataka · ₹35 Cr — Application Submitted
- GRSE — Kolkata, West Bengal · ₹140 Cr — Application Submitted
- Yeoman Marine — Ratnagiri, Maharashtra · ₹94.3 Cr — Application Submitted
Open to every existing Indian shipyard - unlike greenfield clusters there is no one-per-state limit. Grant released in four milestone tranches of 15% - 30% - 35% - 20%.
YOUTUBE EXPLAINER
The scheme that lets existing Indian shipyards expand - 25% of approved project cost as capital assistance, up to ₹1,500 Cr per yard. Watch on YouTube ↗
Brownfield Projects Approved & Under Review - 7 Shipyards
4
IPAs Granted
₹2,045 Cr to be sanctioned
3
Applications Submitted
₹269 Cr under review
₹2,314 Cr
Combined Value
Across 7 shipyards
| # | Shipyard | Location | Investment (₹ Cr) | Status | IEA Allocated | Scope of Project |
|---|---|---|---|---|---|---|
| 1 | Titagarh Naval Systems (TNSL) | Falta, West Bengal | 516 | IPA Granted | Yes (KOMAC) | New yard at Falta - 10-12 vessels up to 160 m/yr |
| 2 | Swan Defence & Heavy Industries (SDHI) | Pipavav, Gujarat | 504 | IPA Granted | Yes (Lloyd's) | Phase 1: Goliath crane & ELL crane |
| 3 | Mat Marine | Kakinada, Andhra Pradesh | 105 | IPA Granted | Yes (AECOM) | Shipbuilding / ship-repair infrastructure incl. slipways for +1,000 GT/yr |
| 4 | Cochin Shipyard Limited (CSL) | Vadinar, Gujarat | 920 | IPA Granted | Yes (Jacobs) | Ship repair facility at Vadinar, jointly with Deendayal Port Authority (DPA) |
| 5 | Synergy Shipbuilders / N Dock Works Ltd | Mangalore, Karnataka | 35 | Application Submitted | To be allocated | Upgradation of Mangalore facility - jetty, basin dredging, covered fabrication units |
| 6 | GRSE | Kolkata, West Bengal | 140 | Application Submitted | To be allocated | Modernisation of 6 jetties incl. RCC pile jetties, bank protection and allied utilities |
| 7 | Yeoman Marine | Ratnagiri, Maharashtra | 94.3 | Application Submitted | To be allocated | Brownfield expansion at Ratnagiri incl. channel dredging, slipway and jetty upgrades, modular fabrication, cranes and automation |
Only projects with in-principle approval granted or an application already submitted to DGMA are listed. In-principle approval carries no financial commitment - capital assistance is sanctioned only at final approval. Investment figures are as declared by applicants and remain indicative until appraisal.
Capital assistance is 25% of the Approved Project Cost, capped at ₹1,500 Cr per shipyard, released in four milestone tranches of 15% - 30% - 35% - 20%.
SbDS Brownfield Expansion Scheme
Facilitates capacity augmentation, modernisation & technological upgradation of existing shipyards to enhance competitiveness and efficiency.
Existing Indian Shipyard
Operational ≥3 years before 24 Sep 2025
Expansion Anywhere in India
Capacity, modernisation & technology upgrade
25% SbDS Brownfield Grant
Of eligible project cost
Up to ₹1,500 Cr per shipyard
Milestone-based disbursement of grant in 4 tranches - 15% - 30% - 35% - 20%.
Eligibility Criteria
Track Record & Land
- Incorporated & operational ≥3 years before 24 Sep 2025
- Land owned outright, or leased ≥15 years from application date
- Lease must be in place before In-Principle Approval
Must Hold ≥3 of 5 Core Assets
- Dry berthing (dry dock / slipway / floating dock / shiplift)
- Wet berthing (jetty / pier / wharf)
- Metal fabrication / hull erection · material handling · waterfront access
Works & JVs
- Works commence only after In-Principle Approval
- Completion within 6 years of Final Approval
- Subsidiaries/JVs eligible if applying yard holds ≥50% (or ≥33.4% in 3+ partner JV)
Eligible Components
1 · Slipway
Launch infrastructure
2 · Dry Dock
New or expanded dry-docking capacity
3 · Shiplift
Vessel transfer systems
4 · Channel & Basin Development
Dredging & access improvements
5 · Pier / Jetty
Berthing infrastructure
6 · Automation & Digitalisation
Production technology upgrades
7 · Cranes
Material handling capacity
8 · Block / Modular Fabrication
Modern construction methods
9 · Floating Dock
Mobile docking capacity
Excluded: Maintenance & repair · Cost of land · Pre-approval projects
Any facility not listed is reviewed by the Implementing Agency (IA) and submitted to NSbM for case-by-case approval.
Approval & Fund-Release Process
Application Preparation
Verify eligibility (≥3 of 5 core assets); prepare DPR (Annexure I) and Business Plan; obtain environmental & statutory clearances; submit online with affidavit/indemnity bond and board resolution.
In-Principle Approval
No financial commitment yet. ≤₹100 Cr: DGMA grants directly. >₹100 Cr: DGMA reviews and refers to NSbM.
IEA Appraisal & Financial Closure
Independent Evaluation Agency conducts a physical site visit, assesses technical feasibility, cost reasonableness, financial viability & regulatory compliance, then issues a TFAR to the Project Appraisal Committee (PAC). Shipyard demonstrates financial closure (equity + debt covering 75% of APC) and submits a security instrument.
Final Approval
Sanction letter issued. ≤₹100 Cr: DGMA approves on PAC recommendation. >₹100 Cr: DGMA → PAC → NSbM.
Milestone-Linked Fund Release - T1 to T4
15% - 30% - 35% - 20% — T1 (15%) on work-order issuance for ≥50% of approved project cost; T2 (30%) at 15% physical progress; T3 (35%) at 75% of T1 utilised; T4 (20%) on 100% project completion certificate & 100% of T1-T3 utilised.
Capability - ISTC
India Ship Technology Centre (ISTC)
ISTC is incorporated as a Section 8 company, with budget allocation sought and received for BE 2026-27 and its CEO and other functionaries being appointed. A steering committee of industry stakeholders - including CSL, IMU, IMDA and SAI - has been set up to initiate SaaS procurement, run a gap analysis of existing testing infrastructure, develop R&D support guidelines, and propose additional testing infrastructure based on that analysis.
Software as a Service (SaaS)
ISTC is mandated to centrally procure design software and offer it to industry at nominal cost - extensive discussions with providers have identified software across three categories:
Design
CADMATIC · Ship Constructor · NAPA
Analysis
ANSYS · ANSYS AQWA · STAR CCM · ORCAFLEX · CAESAR II · SACS
Production
TTM · SolidWorks
Credit Risk Cover
SB Credit Risk Cover - ₹1,443 Cr Corpus
Operationalises the ₹1,443 Cr allocation under SbDS to provide financial protection to Indian shipyards against key risks in domestic and export shipbuilding projects, at nominal premiums.
1 · Pre-Shipment Insurance
Buyer's default - protects the shipyard if the buyer cancels or defaults during construction, covering incurred costs & lost profits
2 · Post-Shipment Insurance
Payment default - covers non-payment after vessel delivery, including commercial disputes and applicable political risks
3 · Vendor Default Insurance
Supply-chain risk - covers losses from a vendor's failure to supply critical equipment, protecting advance payments made by the shipyard
Fund Access & Disbursement
Fund Access & Agencies
Corpus centrally managed by DGMA / SMFCL; access granted to Government-owned entities/PSUs - NIA & ECGC - via Letter of Nomination
Annual Tranches
Released in annual tranches linked to policy uptake, claims processed and utilisation efficiency; mid-year top-up available on request to NSbM
Premiums
Kept nominal - primarily to cover agency operating & training costs. GoI's seed corpus absorbs all risk payouts
Source: Implementation Guidelines for Credit Risk Covers under SbDS, MoPSW / DGMA.
