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The Shipbuilding Financial Assistance Scheme (SBFAS) is a central government program administered by the Ministry of Ports, Shipping and Waterways [https://shipmin.gov.in] that offers financial subsidies directly to Indian shipyards for building commercial vessels. Valid until 31 March 2036, the scheme provides subsidies between 15% and 25% of the contract value (up to 30% for green vessels) to promote domestic shipbuilding, enhance technical capabilities, and generate marine jobs [https://www.pib.gov.in/PressReleasePage.aspx?PRID=1758245].
Who it's for
This scheme is designed for public and private shipyards located in India that are actively engaged in commercial vessel fabrication. To participate, your enterprise must possess a valid waterfront facility, an industrial license for shipbuilding, and registration under the Goods and Services Tax Identification Number (GSTIN) [https://shipmin.gov.in]. It is particularly relevant for shipbuilders, marine engineering startups, and heavy fabrication enterprises looking to construct commercial cargo ships, passenger vessels, and specialized port crafts.
What you get
By registering under SBFAS, eligible shipyards can claim financial assistance calculated as a percentage of the vessel's contract value: Standard Subsidy: Financial assistance ranging between 15% and 25% of the contract value depending on whether the vessel is classified as normal, large, or specialized [https://shipmin.gov.in]. Green Vessel Incentives: Enhanced subsidies up to 30% for commercial vessels that run on eco-friendly green fuels such as hydrogen or ammonia, and up to 20% for vessels utilizing electric propulsion [https://www.pib.gov.in/PressReleasePage.aspx?PRID=1758245]. Funding and Scale*: The program is backed by a total financial outlay of ₹24,736 crore, ensuring long-term financial assistance predictability up to its expiration on 31 March 2036 [https://www.pib.gov.in/PressReleasePage.aspx?PRID=1758245].
How it works
The process for claiming financial assistance under the SBFAS follows these chronological stages:
- Register your shipyard: Submit an application on the official Shipbuilding Management System online portal to verify your shipyard facilities [https://shipmin.gov.in].
- Submit contract for approval: Once your shipyard registration is approved by the Directorate General of Shipping, log in and apply for In-Principle Approval (IPA) for each specific vessel contract. The contract must be signed between 24 September 2025 and 31 March 2036 [https://shipmin.gov.in].
- Construct the vessel: Build the vessel and deliver it within the stipulated delivery timeline, which is typically 3 years for standard vessels and up to 6 years for specialized categories [https://www.pib.gov.in/PressReleasePage.aspx?PRID=1758245].
- Disbursement request: Submit a claim for financial assistance post-delivery. The designated inspection authority will perform physical verification of the vessel parameters [https://shipmin.gov.in].
- Subsidy release: Upon successful verification, the Ministry of Ports, Shipping and Waterways releases the financial assistance directly to the shipyard's bank account [https://shipmin.gov.in].
What you'll need
Shipyards must compile and upload the following documents on the portal during registration and application: Proof of business incorporation or partnership deed [https://shipmin.gov.in]. Valid industrial/factory license authorizing shipbuilding [https://shipmin.gov.in]. Waterfront proof, such as a valid waterfront lease agreement or possession certificate [https://shipmin.gov.in]. GSTIN certificate and Import Export Code (IEC) [https://shipmin.gov.in]. PAN card and audited financial statements for the last 3 fiscal years [https://shipmin.gov.in]. A Class 3 Digital Signature Certificate (DSC) for application signing [https://shipmin.gov.in].
Important constraints
Defense Vessel Exclusion: The scheme does not cover military or defense vessels built for the Indian armed forces or security agencies [https://shipmin.gov.in]. No Duplicate Claims: Shipyards cannot seek duplicate financial assistance or capital subsidies for the same vessel from any other state or central government programs [https://shipmin.gov.in]. Waterfront Lease Expiry: The remaining period of your shipyard's waterfront lease must match or exceed the scheduled delivery timeline of the vessel under contract. Expired leases will result in rejection [https://shipmin.gov.in]. Online Only: The application and all document uploads must be completed through the online portal. Physical submissions are not accepted [https://shipmin.gov.in].
Next step
To understand how these maritime subsidies fit into India's wider manufacturing policies, read our Make in India scheme page, review the SBFAS Frequently Asked Questions, or run the Eligibility Wizard to check your company's alignment with government criteria.