SHIPBUILDING FINANCIAL ASSISTANCE POLICY AND MARITIME DEVELOPMENT FUND

Key Highlights:

• The Shipbuilding Financial Assistance Scheme (SBFAS), an extension of Shipbuilding Financial Assistance Policy (SBFAP), has an outlay of ₹24,736 crore.
• SBFAS aims to address cost disadvantages faced by Indian shipyards compared to global counterparts.
• The Maritime Development Fund (MDF) has been established with a corpus of ₹25,000 crore for long-term financing.
• MDF comprises a Maritime Investment Fund (MIF) of ₹20,000 crore and an Interest Incentivisation Fund (IIF) of ₹5,000 crore.
• These initiatives align with the Maritime Amrit Kaal Vision 2047 (MAKV 2047).

Detailed Insights:

• The scheme guidelines for operationalizing SBFAS were issued on December 26, 2025, with in-principle approvals already being granted.
• Guidelines for the MDF were issued on February 20, 2026, to facilitate its implementation.
• SBI Ventures Limited was appointed as the Fund Manager for the MIF on May 26, 2026.
• MAKV 2047 targets India to be in the top 10 globally in ship ownership and shipbuilding by 2030, and top 5 by 2047.
• These measures collectively enhance the competitiveness of Indian shipyards and provide crucial long-term financing for maritime infrastructure.

Key Concepts Involved:

• Shipbuilding Financial Assistance Scheme (SBFAS): A government scheme providing financial aid to Indian shipyards to mitigate cost disadvantages against international competitors.
• Maritime Development Fund (MDF): A dedicated fund offering long-term financial support for the development of India's shipbuilding and broader maritime sector.
• Maritime Amrit Kaal Vision 2047 (MAKV 2047): A strategic vision outlining India's long-term goals to become a leading global player in ship ownership and shipbuilding.
• Maritime Investment Fund (MIF): A component of the MDF specifically allocated for investments within the maritime industry.