Cochin Shipyard Ltd (CSL) is set to benefit from significant government support under the revised Shipbuilding Financial Assistance Scheme, with draft guidelines confirming that the proposed six LNG-powered container vessels for French shipping major CMA CGM will qualify as ‘specialised ships’.
Vessels powered by dual-fuel engines—including LNG, methanol and ammonia—are categorised as specialised, enabling shipyards to claim 15% financial assistance on the first ₹100 crore of the contract value and 25% on the value beyond ₹100 crore. For example, a ₹300-crore project would attract 15% assistance for the first ₹100 crore and 25% for the remaining ₹200 crore.
This clarity on eligibility and incentives is expected to help CSL finalise its commercial offer and accelerate the signing of the firm contract with CMA CGM. The two sides signed a Letter of Intent on October 14, 2025, for constructing the 1,700 TEU container ships, which will be the first of their kind built in an Indian yard.
The guidelines list 19 specialised vessel categories, including LNG and LPG carriers, chemical tankers, offshore production units, dredgers, wind turbine installation vessels, cable-laying ships, and dual-fuel engine-powered green vessels.
Financial assistance will be closely linked to local content. Ships with less than 30% domestic input will not qualify for support, while those with 30–40% content will be eligible on a pro-rata basis. Full assistance will apply only to ships with 40% or more Indian-made components, goods and services.
Delivery timelines are also a key condition: regular vessels must be completed within four years from the contract date, while specialised vessels will be allowed up to six years to qualify for support.
The revised scheme aims to boost India’s shipbuilding ecosystem, encourage advanced vessel construction and help domestic yards compete globally in specialised maritime segments.
