Image Credits : India Briefing
India’s shipbuilding and shipping sectors are set to benefit from fresh funding options as the government and financial institutions introduce new schemes to support growth and modernization in these vital industries. The move is part of a broader strategy to enhance the country’s maritime capabilities and reduce reliance on foreign vessels.
A number of initiatives have recently been announced by the Ministry of Ports, Shipping, and Waterways with the goal of supporting the shipbuilders and shipping companies’ financial stability. These measures include the introduction of specialized credit lines, incentives for green and digital shipping, and increased funding for shipyard modernization projects. The government’s focus is on promoting sustainability and technological advancements, ensuring that Indian shipyards and shipping firms remain competitive on the global stage.
One of the key elements of this funding push is the expansion of the Shipbuilding Financial Assistance Policy (SBFA), which offers financial aid to domestic shipbuilders. The policy, which has been extended to 2030, provides up to 20% of the contract value as financial assistance for ships built in India, making it an attractive proposition for both local and international investors. This extension is expected to boost the order books of Indian shipyards, which have been facing stiff competition from global players.
Additionally, the Shipping Development Fund Committee (SDFC) is exploring new financing models to attract private investment into the sector. These models include the issuance of green bonds and the establishment of dedicated maritime investment funds. The SDFC aims to mobilize resources for the construction of energy-efficient and environmentally friendly vessels, aligning with the global push towards decarbonization in the maritime industry.
Industry experts have welcomed these initiatives, noting that they could significantly enhance the capacity and competitiveness of India’s maritime sector. As the country aims to become a leading shipbuilding and shipping hub, the availability of diverse funding options will play a crucial role in achieving this vision.