In a written reply to the Rajya Sabha on 29 July, Ports & Shipping Minister Sarbananda Sonowal detailed how a new Maritime Development Fund (MDF) and an expanded Shipbuilding Financial Assistance Scheme (SBFAS) will make India a top-five ship-building nation by 2047. The MDF’s ₹20,000-crore Maritime Investment Fund—managed by SBI Ventures—will provide 15-year loans at concessional rates to private and public yards, while a ₹5,000-crore Interest-Incentivisation window will buy down borrowing costs for first-time vessel owners. In parallel, SBFAS extends the existing production-linked incentives for newbuilds through 2031, offsetting a cost disadvantage of up to 15 % against Chinese and Korean yards. For mobility and logistics strategists, bigger domestic yards promise a shorter lead-time for coastal feeder vessels, offshore wind installation ships and Ro-Ro ferries—assets critical to India’s ‘Sagarmala’ port-connectivity plan. Local builds also make it easier to enforce Indian crewing ratios and create thousands of high-skill jobs, boosting expatriate returnee opportunities. Global buyers could benefit as well. The policy allows shipbuilders exporting hulls to claim the subsidy, potentially shaving US$2-3 million off a Handymax carrier. Financing structures mirror Korea’s KEXIM model, offering Indian export credits that ride on sovereign risk—an attractive proposition for African and ASEAN shipping lines. Sonowal’s statement underlines that shipbuilding incentives dovetail with the Maritime Amrit Kaal Vision 2047, which targets top-10 global ranking in ship ownership by 2030. The next milestone is the release of standard loan agreements by SBI Ventures in August; yards like Cochin Shipyard and L&T Kattupalli are already preparing applications.
Source: India Shipping News
