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Industry flags domestic content norms, design mandates and funding gaps.

Shipyards Seek Major Tweaks to Shipbuilding State Aid Scheme.

Indian shipyards have sought significant amendments to the ₹20,416 crore Shipbuilding Financial Assistance Scheme (SBFAS), urging the government to recalibrate norms to help the sector fully realise its benefits. In a representation to the Ministry of Ports, Shipping and Waterways, the Shipyards Association of India (SAI) proposed deferring domestic content requirements by three years for domestic orders and five years for export vessels—citing the underdeveloped local equipment ecosystem. Currently, the scheme links aid disbursement to a minimum 30% domestic content threshold, with full assistance available only beyond 40%. Shipyards argue this may hinder projects relying on high-value imported systems. The association also asked the government to reconsider equating commercial shipbuilding with naval equipment norms and to mandate phased involvement of Indian design houses to strengthen indigenous capabilities. Other key demands include classifying large floating dry docks as specialised vessels, extending timelines under the outgoing policy, higher aid for green vessels, flexibility in contract price revisions, and expanding capital grants to cover critical shipyard infrastructure and worker facilities.