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 <strong>Shipbuilding Financial Assistance Scheme (SBFAS)</strong>, described as an extension of the <strong>Shipbuilding Financial Assistance Policy (SBFAP)</strong>.
The Minister also stated that the government has established the <strong>Maritime Development Fund (MDF)</strong> for long-term financing support to India’s shipbuilding and maritime sector, with two sub-components: the <strong>Maritime Investment Fund (MIF)</strong> and the <strong>Interest Incentivisation Fund (IIF)</strong>.
Key announced numbers and operational steps:
<ul class="list-disc pl-5 mb-3 space-y-1"><li><strong>SBFAS outlay</strong>: ₹24,736 crore, aimed at addressing cost disadvantages faced by Indian shipyards vis-a-vis global shipyards.</li><li><strong>MDF corpus</strong>: ₹25,000 crore for long-term financing support.</li><li><strong>MDF components</strong>:<ul class="list-disc pl-5 mb-3 space-y-1"><li><strong>MIF</strong>: ₹20,000 crore.</li><li><strong>IIF</strong>: ₹5,000 crore.</li></ul></li><li><strong>SBFAS scheme guidelines issued</strong>: 26.12.2025.</li><li><strong>In-principle approvals</strong>: shipbuilding financial support approvals are given in accordance with the scheme guidelines.</li><li><strong>MDF guidelines issued</strong>: 20.02.2026.</li><li><strong>Fund manager appointment</strong>: SBI Ventures Limited appointed as the Fund Manager for MIF on 26.05.2026.</li></ul>