CSL eligible for 15–25% government aid for building LNG-powered ships for CMA CGM

By Admin

11 Nov, 2025

Boost for India’s Shipbuilding Ambitions

Cochin Shipyard Ltd (CSL) is set to receive a major financial boost under the Government of India’s revised Shipbuilding Financial Assistance Scheme. According to the latest draft guidelines, CSL’s proposed six LNG-powered container vessels for French shipping major CMA CGM will be classified as ‘specialised ships’. This classification makes them eligible for significant government aid 15% financial assistance on the first ₹100 crore of each project’s value and 25% on any amount exceeding that threshold.

Eligibility for Dual-Fuel and Specialised Ships
Under the revised scheme, vessels equipped with dual-fuel engines powered by LNG, methanol, or ammonia are recognised as ‘specialised vessels’. For instance, a ₹300-crore shipbuilding project would attract 15% assistance on the initial ₹100 crore and 25% on the remaining ₹200 crore. This financial clarity will enable CSL to finalise its commercial terms with CMA CGM, expediting the signing of a firm construction contract. The two parties had earlier signed a Letter of Intent on October 14, 2025, for building six 1,700 TEU container ships the first of their kind ever to be built in India.

Focus on Domestic Content and Sustainability
The scheme strongly encourages local participation and content. Ships with less than 30% domestic input will not qualify for financial aid. Projects with 30–40% Indian-made goods and services will be eligible for proportional benefits, while full assistance will be available for ships with 40% or more indigenous content. This move is expected to boost domestic manufacturing, create new opportunities for Indian suppliers, and reduce reliance on imported shipbuilding materials.

Delivery Timelines and Broader Impact
The government has also introduced specific timelines for eligibility. While regular vessels must be delivered within four years from the contract date, specialised vessels like LNG-powered ships will have a six-year completion window. The guidelines identify 19 categories of specialised ships including LNG and LPG carriers, dredgers, offshore production units, cable-laying vessels, wind turbine installation ships, and dual-fuel green vessels demonstrating the government’s commitment to expanding India’s advanced maritime capabilities.

A Step Toward Global Competitiveness
This revised scheme is a strategic step toward making India a global hub for advanced shipbuilding. By incentivising complex and sustainable vessel construction, it aims to empower Indian shipyards like Cochin Shipyard Ltd to compete globally. The upcoming LNG-powered container ships for CMA CGM will not only mark a technological milestone but also reflect India’s growing prominence in green and energy-efficient maritime innovation.