India has issued a note regarding the Shipbuilding Financial Assistance Policy

The Directorate General of Shipping, India has issued a merchant shipping notice regarding the Shipbuilding Financial Assistance Policy (SBFAP).

The Shipbuilding Financial Assistance Policy is a government initiative in India that provides financial assistance to Indian Shipyards for the construction of green-fuelled vessels.

The policy aims to promote sustainable shipbuilding practices and reduce the environmental impact of the shipping industry.

Under the policy, financial assistance of 30% is provided for vessels that use green fuels such as Methanol, Ammonia, or Hydrogen fuel cells as their main propulsion.

Financial assistance of 20% is provided for vessels with electric means of propulsion or vessels fitted with hybrid propulsion systems.

The policy also urges the Shipbuilding Industry to make use of the provisions of the government initiative of green vessels in the country.

The eligibility criteria for Indian Shipyards to receive financial assistance under this policy are not specified in the document.

However, the policy is expected to benefit the Indian shipbuilding industry in terms of international market competitiveness.

This notice was issued on 1 November 2023.

For more information, please see the document below (available only to subscribers):

Shipbuilding Financial Assistance Policy (SBFAP) - Financial Assistance to Promote Shipbuilding of Green-Fuelled Vessels in Indian Shipyards