Domestic shipyards have received orders with Rs 6,800 crore in the last four years for 88 vessels. These orders have been made possible because of the Shipbuilding Financial Assistance Policy (SBFAP). Responding to queries in the Rajya Sabha, Minister for Ports, Shipping and Waterways, Sarbananda Sonowal said that India’s 31 Shipyards have delivered 69 vessels worth Rs 1,145 crore to domestic and international ship owners during this period. Financial assistance of Rs 193 crore.
The scheme offers financial assistance to Indian Shipyards for shipbuilding contracts signed between April 1, 2016 and March 31, 2026 with rate of financial assistance starting from 20% in 2016 and diminishing to 11% in 2026.
The scheme was introduced to make India made ships competitive with those manufactured in other countries.
In May this year, guidelines for the scheme were amended to include wind farm installation vessels and construction of sophisticated dredgers as specialized vessels which are eligible to get higher financial assistance. The amendments also allowed including financial assistance of 30% for vessels where main propulsion is achieved by means of green fuels such as Methanol, Ammonia or Hydrogen fuel cells. Another set of changes enabled a 20%
financial assistance for vessels with electric propulsion or vessels fitted with hybrid propulsion system.
The scheme was already supporting Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas carrying vessels. Chemical Tankers, floating or submersible drilling or production platforms were also getting subsidies.