India’s SBFAP (Shipbuilding Financial Assistance Policy) Scheme which was launched in a bid to fortify the “Make in India” initiative, bolster India’s shipbuilding industry, and boost Green-Fueled Ships Innovation, by the Ministry has propelled, and empowered Indian shipyards to secure orders both domestically and globally while enhancing competitiveness in the international market.
The SBFAP scheme offers crucial financial aid to Indian shipyards for shipbuilding contracts inked between April 1, 2016, and March 31, 2026. Starting at a rate of 20% in 2016, the financial assistance gradually decreases to 11% by 2026.
Interestingly, this policy has been instrumental in facilitating numerous orders, totaling 88 vessel orders valued at Rs. 6800 crore from 31 shipyards over the past four years. These orders encompass both domestic and export markets, underscoring the scheme’s effectiveness in driving substantial economic activity.
Shipyards have successfully delivered 69 vessels amounting to Rs. 1145 crore under SBFAP Scheme
During this period, shipyards have successfully delivered 69 vessels amounting to Rs. 1145 crore to domestic and international ship owners, benefiting from approximately Rs. 193 Crore in assistance under SBFAP.
Additionally, the recent government initiative to provide heightened SBFA funding for green-fueled and hybrid vessels is anticipated to further catalyze shipbuilding orders.
The government’s proactive stance is evident in the strategic measures adopted to encourage indigenous manufacturing through technological advancements and enhanced machinery. Noteworthy amendments to the SBFAP guidelines now encompass wind farm installation vessels and sophisticated dredgers as eligible for increased financial assistance, emphasizing the scheme’s adaptability to evolving industry needs.
Furthermore, the revised guidelines demonstrate a keen focus on sustainability by offering significant financial assistance of 30% for vessels propelled by green fuels like Methanol, Ammonia, or Hydrogen fuel cells.
Furthermore, vessels employing electric propulsion or those equipped with hybrid propulsion systems are eligible for a 20% financial assistance boost under the SBFAP guidelines.
Union Minister for Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, highlighted these developments in a written reply to the Rajya Sabha, reaffirming the government’s commitment to fostering innovation, sustainability, and growth within the Indian shipbuilding ecosystem.
