India launches World’s first Shipbreaking Credit Note under SBFAS 2.0
New initiative links responsible ship recycling with domestic shipbuilding to strengthen India’s maritime ecosystem
NEW DELHI : India has become the first country in the world to introduce the Shipbreaking Credit Note (SbCN) under the Shipbuilding Financial Assistance Scheme (SBFAS) 2.0, marking a major milestone in the nation’s journey toward becoming a global maritime powerhouse.
The pioneering initiative transforms end-of-life vessel recycling into a catalyst for new ship construction by creating a direct financial link between sustainable ship recycling and domestic shipbuilding.
Under the scheme, vessel owners who recycle their ships at Indian recycling facilities compliant with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) will receive a tradeable Shipbreaking Credit Note. The credit note can be utilized as a subsidy for constructing new vessels at Indian shipyards, encouraging greater investment in the country’s shipbuilding sector.
The SbCN introduces several innovative features designed to maximize industry participation and ease of use:
Tradeable credit notes that can be transferred to eligible stakeholders
Stacking provisions allowing multiple credit notes to be combined
Three-year validity period to provide greater flexibility for shipowners and investors
End-to-end digital processing to ensure transparency, efficiency, and ease of access
The initiative is expected to accelerate the adoption of environmentally responsible ship recycling practices while enhancing the competitiveness of Indian shipyards.
By incentivizing the use of HKC-compliant recycling facilities and promoting reinvestment in domestic shipbuilding, the Shipbreaking Credit Note supports India’s vision of developing a circular maritime economy and emerging as a globally competitive maritime nation.
The launch of SbCN under SBFAS 2.0 underscores the Government of India’s commitment to sustainable growth, innovation, and self-reliance in the maritime sector.
Stakeholders across the shipping and shipbuilding value chain are expected to benefit from the scheme, which aims to generate new economic opportunities, strengthen industrial capabilities, and reinforce India’s position as a leading hub for ship recycling and ship construction.
For more information on the Shipbreaking Credit Note and SBFAS 2.0, stakeholders are encouraged to visit the official channels of the Ministry of Ports, Shipping and Waterways.
Watch the official video to learn how the Shipbreaking Credit Note is promoting sustainable maritime practices, strengthening India’s shipbuilding ecosystem, and supporting the vision of a globally competitive maritime nation.
