Shipbuilding Financial Assistance Subsidy 2025

India’s shipbuilding sector is now moving toward a new era of growth through the Shipbuilding Financial Assistance Subsidy Scheme. This scheme, begun by the Ministry of Ports, Shipping and Waterways, aims to strengthen local manufacturing.
Moreover, this head policy supports Indian shipyards through measured financial assistance. As a result, vessels built in India can remain globally competitive.

At Finraja Consultancy Private Limited, we specialize in helping shipyards, marine fabricators, and maritime infrastructure firms unlock this government subsidy with end-to-end professional guidance — from paperwork to disbursal.

Understanding the Shipbuilding Financial Assistance Subsidy

The Shipbuilding Financial Assistance Policy (SBFAP) was introduced to encourage ‘Make in India’ within the maritime sector. It provides direct financial support to eligible Indian shipyards for constructing new vessels under valid contracts signed between April 1, 2016 and March 31, 2026.

The subsidy acts as a percentage-based reimbursement on the vessel’s fair or contract price.
According to the official guidelines:

This sliding scale shows how the scheme encourages early adoption, rewarding shipyards that initiate projects sooner.

Why This Subsidy Matters for Shipyards

The shipbuilding industry demands high upfront capital, complex purchase, and long project cycles.
Therefore, this subsidy offers financial cushioning against global price competition. It helps Indian shipyards remain profitable and sustainable.

However, beyond the policy, success depends on accurate financial assessment, compliance, and claim strategy — that’s where Finraja Consultancy adds value.

Our experts evaluate:

• Capital cost and funding pattern
• Project viability and cost-benefit ratio
• paperwork under DG Shipping norms
• Post-construction claim filing with competent authorities

Eligibility for Shipbuilding Subsidy

Eligibility is a crucial aspect, and understanding it accurately prevents future rejections.
Based on the official notification:

Who can apply:
All Indian shipyards constructing and delivering vessels within the defined period are eligible.

Eligible vessels:

• Commercial vessels such as cargo ships, tankers, dredgers, and passenger ships (over 24 m in length)
• Specialized vessels – LNG carriers, FPSO/FSRU units, and offshore platforms

Excluded: Defence vessels, wooden boats, and crafts below 24 m for domestic use.

However, eligibility alone isn’t enough. In fact, timely paperwork, valuation reports, and “in-principle” approvals decide the final outcome. Finraja ensures every requirements point matches government checklists.

Funding Pattern and Financial Assessment

The financial assistance is calculated as a percentage of the lowest of:

• the Contract Price,
• the Fair Price (evaluated by DG Shipping / approved valuers), or
• the Actual Payment Received.

At Finraja, we perform a Comprehensive Financial Assessment (CFA) for each project:

1. Evaluate vessel type, size, and construction schedule.
2. Determine fair-value alignment with international price trends.
3. Prepare cost justification, bank statements, and CA certificates.
4. Create a funding pattern plan showing subsidy part, term-loan, and equity contribution.

Consequently, this analysis forms the base for accurate claim estimation and audit-ready paperwork. In short, it becomes a key differentiator for successful subsidy approvals.

Furthermore, the scheme defines certain Investment Criteria that every shipyard must meet. These include capital investment in shipbuilding facilities, dry docks, or yard modernization. Additionally, the yard must maintain technical capability and a valid license to build vessels recognized by DG Shipping.
Finraja Consultancy carefully reviews your investment plan, ensuring it aligns with eligibility norms and approved funding patterns before any submission.

Rate of Financial Assistance & Benefit Computation

The rate depends on the year of contract signing, not delivery.
For instance, a shipyard signing in 2024 may receive 14 %, whereas a 2025 contract would fetch 11 %.

Finraja helps clients:

• Calculate subsidy in rupee terms for budgeting and cash-flow.
• Align project timelines to maximize assistance.
• Model return-on-investment considering tax, depreciation, and subsidy inflows.

By combining financial modeling with policy understanding, we ensure shipyards secure every eligible rupee of government support.

Shipbuilding Subsidy Application Process with Finraja

Although the official process involves digital registration, valuation, and online submission through the DG Shipping portal, handling it independently can quickly become overwhelming. Therefore, professional support becomes essential.

Here’s how Finraja Consultancy simplifies it:

1. Initial Evaluation: We review contracts, vessel specifications, and yard capabilities.
2. Eligibility Screening: Our team checks compliance with Schedule I & II requirements.
3. Document Preparation: We coordinate with Chartered Accountants, Recognized Organizations, and valuers for all necessary annexures.
4. CFA & Funding Pattern Report: Detailed financial mapping aligned with DG Shipping guidelines.
5. Application Submission: Filed digitally with complete audit-ready packets.
6. Claim Tracking & Follow-Up: Continuous liaison with the competent authority until sanction and disbursal.

How to Apply for Shipbuilding Subsidy through Finraja

Although the government portal accepts direct submissions, industry experience shows that technical discrepancies, valuation mismatches, or incomplete affidavits often delay or reject claims.

As a result, partnering with Finraja ensures full accuracy and timely approvals:

• Correct valuation certificate selection (from DG Shipping-approved list).
• Timely application within 45 days of contract signing.
• Compliance with “In-Principle Approval” procedure (Annexure-I).
• Submission of “Release of Assistance” documents post delivery (Annexure-II).

Our experts maintain end-to-end accuracy while your shipyard focuses on its core business — building ships, not paperwork.

Key Highlights – Shipbuilding Subsidy India 2025

• Valid till 31 March 2026 for contracts signed before that date.
• Financial Assistance up to ₹40 crore per vessel.
• Applicable to both domestic and export orders.
• Covers construction, modernisation, and expansion of shipyards.
• Encourages use of Indian-made steel and components.
• DG Shipping is the competent authority for approvals.

Conclusion: Shipbuilding Financial Assistance Subsidy

The Shipbuilding Financial Assistance Subsidy 2025 offers a strategic lifeline for India’s shipyards to stay globally competitive.
However, managing paperwork, valuation, and compliance alone can be both time-consuming and risky. Hence, expert guidance from Finraja Consultancy makes the process smoother and faster.

Partner with Finraja Consultancy Private Limited to transform this policy opportunity into real financial growth.
Our experts ensure every vessel you construct earns the maximum eligible benefit through measured planning and precision execution.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.