The Government of India has finalised details of its financial support mechanism under the Shipbuilding Development Scheme (SbDS), announcing that capital assistance for brownfield shipyard expansion will be capped at ₹1,500 crore per shipyard. The decision forms part of broader efforts to modernise India’s maritime manufacturing infrastructure and strengthen domestic shipbuilding capacity. 
Under the policy framework being readied by the Ministry of Ports, Shipping and Waterways, existing shipyards seeking to upgrade or expand their facilities will be eligible for capital support equivalent to up to 25% of the fair assessed project cost, with the maximum grant-in-aid limited to ₹1,500 crore per project. To qualify, shipyards must be registered companies and have been operational for at least three years from their registration date. 
The scope of eligible expansion activities includes strategic assets such as dry docks, slipways, ship lifts, floating docks, piers and jetties, cranes and modular fabrication facilities, as well as automation and digitisation enhancements. However, routine maintenance and repair of existing facilities, as well as land acquisition costs, will not be covered under the support scheme. 
Financial assistance will be disbursed in four tranches, tied to the achievement of pre-defined project milestones, with a release pattern of 30%–25%–25%–20% across these stages. 
This brownfield support initiative complements central government incentives for greenfield shipbuilding clusters, which do not have a fixed cap on funding but must include at least one anchor shipyard with a minimum annual capacity of 0.5 million gross tonnage and secure land from state authorities at nominal cost. 
The broader Shipbuilding Development Scheme, which has an outlay of nearly ₹19,989 crore, is part of the government’s maritime growth strategy under its wider maritime infrastructure revitalisation package aimed at expanding domestic shipbuilding to 4.5 million gross tonnage annually and enhancing India’s competitiveness in the global maritime sector. 
Industry analysts say the clarified funding cap for brownfield expansion will help existing shipyards plan capacity upgrades more prudently and attract private investment alongside central support, bolstering the shipbuilding ecosystem at a time when India is positioning itself as a major maritime manufacturing hub.