Shipbuilding Financial Assistance Scheme (SBFAS) and Shipbuilding Development Scheme (SbDS)

• The Ministry of Ports, Shipping and Waterways (MoPSW) has notified the operational guidelines for two major shipbuilding initiatives.
• These initiatives are the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS).

About Shipbuilding Financial Assistance Scheme (SBFAS)

• The objective of SBFAS is to provide direct financial assistance to promote domestic shipbuilding.
• Under the scheme, financial assistance ranges from 15% to 25% per vessel.
• The assistance varies based on vessel categories such as small, large, and specialised vessels.
• SBFAS provides for the establishment of a National Shipbuilding Mission.
• The National Shipbuilding Mission aims to ensure coordinated planning and execution of shipbuilding initiatives across India.
• SBFAS introduces Shipbreaking Credit as a new incentive mechanism.
• Under Shipbreaking Credit, ship owners scrapping vessels at Indian yards will receive a credit equal to 40% of the scrap value.
• This provision supports a circular economy, which promotes resource reuse and waste minimisation.

About Shipbuilding Development Scheme (SbDS)

• The objective of SbDS is long-term capacity and capability creation in the shipbuilding sector.
• SbDS supports the development of greenfield shipbuilding clusters, which are new shipbuilding facilities built from scratch.
• The scheme also promotes the expansion and modernisation of existing brownfield shipyards, meaning already operational facilities.
• SbDS provides for the establishment of an India Ship Technology Centre.
• The India Ship Technology Centre will be set up under the Indian Maritime University to strengthen research, design, and innovation in shipbuilding.