Maintenance and repair of existing facilities and the cost of land are not covered under the scheme.MUMBAI: The government will offer capital assistance up to 25 per cent of a ‘Fair Assessed Project Cost’ with a limit of ₹1,500 crore per shipyard for modernising and expanding the capacity of existing facilities, according to a plan being finalised to implement the ₹19,989 crore Shipbuilding Development Scheme approved by the Union Cabinet in September.
However, the capital support (grant-in-aid) scheme for creating greenfield shipbuilding clusters in coastal states will not specify a percentage or cap.
The Shipbuilding Development Scheme aims to support shipbuilding capacity creation of 4.5 million gross tonnage (GT) per annum.
For brownfield capacity expansion fund support, the shipyard must be a registered company and should have been operational for a minimum of three years from the date of registration.
The expansions may be undertaken anywhere in India. Subsidiaries and joint venture arrangements (where shipyard owns minimum 50 per cent equity) are eligible for support.
The assistance will be released in four tranches (30 per cent-25 per cent-25 per cent-20 per cent) linked to milestone-based progress.
The capital support for brownfield expansion covers channel and basin development, dry dock, slipway, ship lift, floating dock, pier/jetty, cranes, block/modular fabrication facility, automation and digitisation.
Maintenance and repair of existing facilities and the cost of land are not covered under the scheme.
The capital support for greenfield shipbuilding clusters will be valid for Detailed Project Reports (DPRs) submitted between September 24, 2025, and March 31, 2036.
Greenfield shipbuilding clusters seeking capital support from the Centre must house at least one anchor shipyard with 0.5 million gross tonnage (GT) annual capacity within ten years.
Land for the greenfield shipbuilding clusters should be provided by the respective state governments at a nominal cost.
The support will be applicable to Special Purpose Vehicles (SPVs) formed as a 50:50 joint venture between the Centre and state agencies and the shipyard partners must have five plus years’ experience.
The site will be developed and operationalised on a 60-year lease model and funds will be released in four tranches (30 per cent-25 per cent-25 per cent-20 per cent) based on milestones.
The Central fund support for greenfield shipbuilding clusters will cover maritime infrastructure (breakwaters, basins, channel, land reclamation), regional capability development centres, common maritime assets (barges, floating cranes) and internal infrastructure and utilities.
All other costs will have to be met by the SPV through equity, debt and state grants, while individual shipyard facilities should be funded by the private partners.
For disbursing capital support, the Centre will give preference to green field shipbuilding clusters that provide enabling conditions (land availability, state-level facilitation, connectivity infrastructure and policy support), generate shipyard interest, promote ancillary industries, skill development and green shipbuilding practices, according to the plan, which is expected to be announced soon.
