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Flexible shipbuilding aid to power India’s maritime resurgence.

Govt Plans Flexible ₹20,416-Crore Shipbuilding Aid Scheme to Boost Domestic Vessel Production.                                                                                                                                                   

The government is revamping its ₹20,416-crore Shipbuilding Financial Assistance Scheme (SBFAS) to ensure full utilisation of funds and accelerate domestic vessel construction. The revised scheme will include ships ordered on nomination by Central or State governments, PSUs, and defence export vessels (excluding weapon costs). This flexibility marks a major shift from the current SBFAP, which ends on March 31, 2026. Shipyards will now be allowed to combine benefits from other Central and State schemes, choose between the old or new policy for contracts signed before March 2026, and receive retrospective benefits on future amendments—an advantage unavailable earlier. The scheme also integrates ship recycling incentives through a credit note redeemable for up to 5% of a new vessel’s cost. Expected to support nearly ₹7.96 lakh crore worth of shipbuilding by 2036, the policy offers tiered financial assistance for normal, large, and specialised vessels to strengthen India's maritime ecosystem.