Govt limits Brownfield Shipyard Expansion Aid to ₹1,500 cr

• Brownfield aid capped at ₹1,500cr per shipyard
• Up to 25% of project cost from ₹8,261cr allocation
• Part of ₹19,989cr scheme for 4.5M GT capacity boost

India's​‍​‌‍​‍‌​‍​‌‍​‍‌ government has set the final criteria for the Shipbuilding Development Scheme limiting the cash support to ₹1,500 crores for each shipyard that aims to expand their brownfield projects. The Union Cabinet with a total budget of ₹19,989 crores approved the scheme in September 2025. Out of this, nearly ₹8,261 crores have been earmarked for the modernization and expansion of facilities. The goal is to increase the domestic shipbuilding capacity to 4.5 million gross tonnage per annum.

Under the brownfield scheme, the eligible shipyards are given capital assistance of up to 25% of the 'Fair Assessed Project Cost', subject to the limit of ₹1,500 crores. The qualifying shipyards should be registered companies, operational for at least three years. Expansions are allowed anywhere in India, including through subsidiaries or joint ventures (minimum 50% equity holding).

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Covered expenditurWhat are the questions mentioned in the email will be the development of channels/basins, dry docks, slipways, ship lifts, floating docks, piers/jetties, cranes, block fabrication facilities, automation, and digitization but the land costs and routine maintenance will be excluded.

The grants are given in four milestone-linked tranches (30%-25%-25%-20%). The projects are required to complete within three to four years and be in operation for at least 10 years after the completion. Unlike brownfield, there is no specified percentage or cap for greenfield cluster support. The full plan for implementing the scheme will be out soon, thereby, India is becoming self-reliant in the maritime sector amid the changes in global supply ​‍​‌‍​‍‌​‍​‌‍​‍‌chains.