Sarbananda Sonowal, the Minister for Ports, Shipping, and Waterways, informed that India’s 31 shipyards successfully completed the delivery of 69 vessels valued at Rs 1,145 crore to both domestic and international shipowners. Additionally, in line with the recent initiative from the Government of India to offer increased SBFA funding to ships utilizing green fuels and hybrid vessels, there is anticipation of securing additional shipbuilding orders.
The SBFAP (Ship Building Financial Assistance Policy) scheme was introduced by the Ministry to support the shipbuilding industry in India and to promote the “Make in India” policy. The scheme aims to enable Indian shipyards to secure global orders by being competitive in the international market and obtaining orders from both domestic and international markets. The scheme provides financial support to Indian shipyards for shipbuilding agreements entered into from April 1, 2016, to March 31, 2026, featuring a gradually decreasing rate of financial assistance from 20% in 2016 to 11% in 2026.
Within the framework of the SBFAP initiative, various steps have been implemented to enhance indigenous manufacturing by focusing on modern technologies and machinery. The SBFAP guidelines have undergone revisions to encompass a broader range of vessels eligible for higher financial assistance. Specialized vessels, including wind farm installation vessels and the construction of advanced dredgers, are now included in the amended guidelines. Moreover, the updates introduce a financial assistance rate of 30% for vessels relying on green fuels like Methanol, Ammonia, or Hydrogen fuel cells for their main propulsion. Additionally, vessels featuring electric means of propulsion or equipped with a hybrid propulsion system are eligible for a financial assistance rate of 20% under the revised SBFAP guidelines.
