About Shipbuilding Financial Assistance Scheme:
- It is aimed at strengthening India’s domestic shipbuilding capacity and improving global competitiveness.
- Time Period: It will remain valid until 2036.
- Nodal Ministry: Ministry of Ports, Shipping & Waterways
- Features of Shipbuilding Financial Assistance Scheme:
- Financial Assistance: The government will provide financial assistance depending on the vessel category.
- Graded Support: The scheme introduces graded support for small normal, large normal and specialised vessels, with stage-wise disbursement linked to defined milestones and backed by security instruments.
- Shipbreaking Credit Note: Under this, ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40% of the scrap value.
- It provides for the establishment of a National Shipbuilding Mission to ensure coordinated planning and execution of shipbuilding initiatives.
Key Facts about Shipbuilding Development Scheme:
- It focuses on long-term capacity and capability creation.
- Features of Shipbuilding Development Scheme
- Infrastructure Development: It provides for the development of greenfield shipbuilding clusters, expansion and modernisation of existing brownfield shipyards.
- India Ship Technology Centre: It is to be established under the Indian Maritime University to support research, design, innovation and skills development.
- Funding:
- Greenfield shipbuilding clusters will receive 100% capital support for common maritime and internal infrastructure through a 50:50 Centre–State special purpose vehicle.
- Brownfield expansion will be eligible for 25% capital assistance for brownfield infrastructure such as dry docks, shiplifts etc.
- Credit Risk Coverage: The scheme also includes a Credit Risk Coverage Framework, offering government-backed insurance for pre-shipment, post-shipment and vendor-default risks.
