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Shipbuilding Financial Assistance
What it is
A subsidy paying Indian shipyards a percentage of contract value to offset the cost disadvantage against Korean, Chinese and Japanese yards. The revamped scheme carries an outlay of Rs 24,736 cr within a wider Rs 69,725 cr maritime package approved in 2025-26
Higher assistance applies to green, hybrid and specialised vessels
Impact on industries
- Addresses a real and measured gap - Indian yards cost more than global competitors on scale, steel procurement and supply chain depth, and orders were being lost on price alone
- Higher rates for green and specialised vessels steer yards toward segments where the cost gap is narrower and competition less entrenched
- Subsidy addresses price without fixing the underlying causes - ancillary ecosystem depth, design capability and yard productivity
- It is time-bound, so competitiveness after the scheme window remains the open question, as with every other Indian production incentive