What happened: SBFAS extension and creation of the Maritime Development Fund (MDF)
The Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, stated in a written reply to the Rajya Sabha that the government has extended shipbuilding financial assistance through the Shipbuilding Financial Assistance Scheme (SBFAS), described as an extension of the Shipbuilding Financial Assistance Policy (SBFAP).
The Minister also stated that the government has established the Maritime Development Fund (MDF) for long-term financing support to India’s shipbuilding and maritime sector, with two sub-components: the Maritime Investment Fund (MIF) and the Interest Incentivisation Fund (IIF).
Key announced numbers and operational steps:
SBFAS outlay: ₹24,736 crore, aimed at addressing cost disadvantages faced by Indian shipyards vis-a-vis global shipyards.MDF corpus: ₹25,000 crore for long-term financing support.MDF components:MIF: ₹20,000 crore.IIF: ₹5,000 crore.SBFAS scheme guidelines issued: 26.12.2025.In-principle approvals: shipbuilding financial support approvals are given in accordance with the scheme guidelines.MDF guidelines issued: 20.02.2026.Fund manager appointment: SBI Ventures Limited appointed as the Fund Manager for MIF on 26.05.2026.