News

The Union Government has notified operational guidelines for Shipbuilding Financial Assistance (SBFA) and the Shipbuilding Development Scheme (SDS) to significantly enhance India’s shipbuilding capacity, with a total outlay of ₹44,700 crore. The move aims to strengthen domestic shipbuilding, improve global competitiveness, and advance the vision of Atmanirbhar Bharat.

Key Points

1. Guidelines notified by the Ministry of Ports, Shipping and Waterways (MoPSW).
2. Two major schemes covered:
   • Shipbuilding Financial Assistance (SBFA)
3. • Shipbuilding Development Scheme (SDS)
4. Union Minister Sarbananda Sonowal stated that the initiative will anchor India’s growth in self-reliance and maritime strength.
5. Focus on boosting domestic manufacturing, employment generation, and global competitiveness.
6. Supports forward and backward linkages under Make in India and Viksit Bharat vision.

Scheme-wise Details (Static + Current Integration)

Shipbuilding Development Scheme (SDS)

1. Total outlay: ₹19,899 crore
2. Focus areas:
   • Greenfield shipbuilding clusters
   • Expansion & modernisation of brownfield shipyards
   • Infrastructure, automation, and skill development
3. Funding pattern:
   • Greenfield projects: 100% capital support (50:50 Centre–State SPV)
   • Brownfield expansion: 25% capital assistance
4. Institutional support:
   • Establishment of India Ship Technology Centre
   • Strengthening of Indian Maritime University
5. Risk mitigation:
   • Credit Risk Coverage Framework for pre-shipment, post-shipment, and vendor-default risks.

Why this matters for UPSC

GS Paper III

1. Infrastructure development

2. Industrial policy

3. Blue Economy

4. Employment generation

Prelims

1. Shipbuilding Financial Assistance Scheme

2. Shipbuilding Development Scheme

3. Ministry of Ports, Shipping and Waterways

4. Atmanirbhar Bharat in maritime sector

Prelims MCQ

Q1. With reference to the Shipbuilding Financial Assistance (SBFA) Scheme, consider the following statements:

1. It provides financial assistance of up to 25% per vessel depending on vessel category.

2. It includes incentives for series orders and a shipbreaking credit mechanism.

3. It is implemented by the Ministry of Heavy Industries.

Which of the statements given above is/are correct?

a) 2 and 3 only

b) 1 and 3 only

c) 1 and 2 only

d) 1, 2 and 3

Answer: C) 1 and 2 only

UPSC Mains Practice Question

Q1. India’s ambition to become a developed nation is constrained by its research and innovation deficit.

Analyse the causes of this deficit and suggest measures to strengthen India’s R&D ecosystem. (250 words)