Sarbananda Sonowal informs Rajya Sabha on Growth in Shipbuilding industry in the country

NEW DELHI : To promote “Make in India“ policy and to support shipbuilding industry in India, Ministry has brought in Shipbuilding Financial Assistance Policy (SBFAP) scheme for Indian shipyards to procure orders from domestic as well as international market and to be competitive in international market for securing global orders. The scheme offers financial assistance to Indian Shipyards for shipbuilding contracts signed between April 1, 2016 and March 31, 2026 with rate of financial assistance starting from 20% in 2016 and diminishing to 11% in 2026. The SBFAP scheme has played a crucial role in securing various orders both domestically and internationally by public and private Shipyards at competitive values.

Domestic shipyards have received orders with Rs 6,800 crore in the last four years for 88 vessels. These orders have been made possible because of the Shipbuilding Financial Assistance Policy (SBFAP). Responding to queries in the Rajya Sabha, Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal said that India’s 31 Shipyards have delivered 69 vessels worth Rs 1,145 crore to domestic and international ship owners during this period. Financial assistance of Rs 193 crore.

The scheme offers financial assistance to Indian Shipyards for shipbuilding contracts signed between April 1, 2016 and March 31, 2026 with rate of financial assistance starting from 20% in 2016 and diminishing to 11% in 2026.The scheme was introduced to make India made ships competitive with those manufactured in other countries.

From the data available in the SBFAP scheme, about 88 vessel orders have been procured by 31 Shipyards during the last 4 years from domestic as well as export orders and these orders are worth Rs. 6800 crore. Further, shipyards have delivered 69 vessels worth Rs. 1145 crore to domestic and international ship owners in last 4 years that have received assistance under SBFAP of about Rs. 193 Crore.  Also, with the latest Government of India initiative to provide higher SBFA funding to green fuelled ships and hybrid vessels, further shipbuilding orders are expected to be received. Following measures have been taken with regard to modern technologies and machinery to increase indigenous manufacturing:

The SBFAP guidelines have been amended to include wind farm installation vessels and construction of sophisticated dredgers as specialized vessels which are eligible to get higher financial assistance.

The SBFAP guidelines have been amended to include financial assistance of 30% for vessels where main propulsion is achieved by means of green fuels such as Methanol/ Ammonia / Hydrogen fuel cells.

The SBFAP guidelines have been amended to include a financial assistance of 20% for vessels with electric means of propulsion or vessels fitted with hybrid propulsion system.

In May this year, guidelines for the scheme were amended to include wind farm installation vessels and construction of sophisticated dredgers as specialized vessels which are eligible to get higher financial assistance. The amendments also allowed including financial assistance of 30% for vessels where main propulsion is achieved by means of green fuels such as Methanol, Ammonia or Hydrogen fuel cells. Another set of changes enabled a 20% financial assistance for vessels with electric propulsion or vessels fitted with hybrid propulsion system.

The scheme was already supporting Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas carrying vessels. Chemical Tankers, floating or submersible drilling or production platforms were also getting subsidies.