Shipyards Push For Overhaul In State Aid Scheme

India’s shipbuilding industry is pressing for significant changes to the government’s state aid scheme, highlighting challenges in meeting domestic content requirements and design stipulations. The Shipyards Association of India has submitted proposals to the Ministry of Ports, Shipping and Waterways, aiming to ensure the scheme delivers maximum impact for both domestic and export orders.  

Key Highlights  

• Shipyards want relaxation of domestic content thresholds, citing limited availability of advanced local equipment for propulsion, navigation, and automation systems  
• Proposals include mandatory involvement of local design houses being reconsidered, as shipyards argue it restricts flexibility in global projects  
• Industry seeks inclusion of floating dry docks in the list of specialized vessels eligible for aid  
• The scheme, worth ₹20,416 crore, is designed to boost India’s shipbuilding capacity and competitiveness under the Maritime AmritKaal Vision 2047  
• Shipyards emphasize that easing rules will help them compete internationally and attract more orders, while supporting India’s ambition to be among the top five shipbuilding nations by 2047  

Future Outlook  
If accepted, these changes could transform India’s shipbuilding ecosystem, enabling domestic yards to scale operations, modernize fleets, and contribute significantly to global maritime trade.  

Sources: ETInfra Ports and Shipping, Press Information Bureau, India Seatrade News