Bhubaneswar: Shipbuilding Development Scheme (SbDS) presents a transformative opportunity for Odisha to emerge as a premier maritime hub on India’s eastern seaboard. With a coastline spanning 480 kilometers and existing deep-water ports like Paradip and Dhamra, Odisha is uniquely positioned to capitalize on the Union Government’s multi-billion dollar push for self-reliance in the maritime sector.
Under the SbDS framework, Odisha could leverage the 50:50 Centre-State special purpose vehicle model to establish greenfield shipbuilding clusters. This provision offers 100% capital support for common maritime and internal infrastructure, making the state an attractive destination for large-scale investments. Furthermore, existing industrial zones near the coast can utilize the 25% capital assistance for brownfield expansion, upgrading facilities with modern dry docks, shiplifts, and automated fabrication systems.
The Ministry of Ports, Shipping & Waterways (MoPSW) has issued the notification of the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS).
The SBFAS, with its graded financial assistance of 15% to 25% per vessel, provides a direct incentive for shipyards in Odisha to move beyond traditional repairs and small-scale construction. By focusing on specialized vessels, local yards can tap into a projected decade-long project pipeline worth 96,000 crore rupees. The introduction of the Shipbreaking Credit Note also offers a strategic advantage; Odisha can integrate its recycling capabilities with new construction, creating a circular economy that reduces raw material costs for domestic shipbuilders.
The establishment of the India Ship Technology Centre and the focus on research and innovation under these guidelines will help cultivate a skilled workforce within the state. As the national goal is to reach a commercial shipbuilding capacity of 4.5 million gross tonnage by 2047, Odisha’s strategic location near steel and aluminum hubs provides a natural logistical advantage for the backward linkages.
By aligning state policies with these new operational guidelines, Odisha can transform its maritime landscape, generating significant local employment and securing a leading role in India’s journey toward becoming a global shipbuilding powerhouse.