Swan Defence, Samsung Heavy Sign MoU for Shipbuilding

• Swan Defence-Samsung MoU for shipbuilding; signed Sep 26, 2025.
• Follows ₹69,725 Cr package for top-10 global rank by 2030.
• Includes funds for shipyards, greenfield clusters, infra status.

In a move that is crucial to the shipbuilding aspirations of India, Swan Defence and Heavy Industries Ltd, a company listed in Mumbai, has signed a MoU with Samsung Heavy Industry, a globally leading shipbuilders, to cooperate on the projects of shipbuilding. This pact, is the second big interconnection between an Indian shipyard and a South Korean giant in recent weeks after Cochin Shipyard's deal with HD Korea Shipbuilding & Offshore Engineering on September 20.

Swan Defence, which operates India's largest shipbuilding and heavy fabrication facility by capacity at Pipavav, Gujarat, restarted operations late last year under new management after averting bankruptcy. The company is currently preparing its infrastructure, including equipment testing, to secure its first order. This MoU with Samsung underscores growing international interest in India's revitalized maritime sector.

Just two days after the Indian Cabinet approved a 69,725 crore package to accelerate the shipbuilding industry, the deal was signed. The project intends to rank India among the world's top 10 shipbuilders by 2030 and top 5 by 2047, thereby overcoming the country's present extremely low 0.07% share of global shipbuilding tonnage.

Also Read: CSL, Hyundai Affiliate, TN Govt Ink MoUs to Boost Shipbuilding

The main measures include the 24,736 crore Shipbuilding Financial Assistance Scheme (SBFAS) under which 20,554 crore is the money grant for shipyards, 4,001 crore is for shipbreaking credit notes (giving 40% of the value of the scrap as a refund), and ₹181 crore is for a National Shipbuilding Mission.

Moreover, a 25,000 crore Maritime Development Fund (MDF) was approved, consisting of 20,000 crore as a Maritime Investment Fund (49% government equity) and 5,000 crore Interest Incentivization Fund (up to 3% incentives) to attract private investment through blended finance. The Shipbuilding Development Scheme (SbDS), 19,989 crore, plans to distribute 9,930 crore for greenfield clusters, 8,261 crore for brownfield expansions, 305 crore for the India Ship Technology Centre, and 1,443 crore for risk credit cover.

Complementing these, the Finance Ministry on September 19 notified infrastructure status for large ships, offering benefits like low-cost, long-term funding to vessels over 10,000 GT  or 1,500 GT Currently, only 5% of India's EXIM cargo travels on Indian-owned ships, highlighting the urgency for growth.