Two Credit Risk Insurance Policies Launched to Protect Indian Shipyards from Payment Defaults
The Ministry of Ports, Shipping and Waterways launched two credit risk insurance policies for shipbuilding projects. Credit risk insurance protects a seller if the buyer delays payment or fails to pay.
Shipbuilding Project Credit Risk Insurance Policy (SbPCP): offered by ECGC Ltd, it covers export shipbuilding projects (ships built in India for foreign buyers).
Business Credit Shield Policy–Shipbuilders (BCSPS): offered by The New India Assurance Company Ltd, it covers domestic shipbuilding projects.
The government will pay part of the insurance premium and support the insurers when shipyards make claims. Details of premium subsidy, coverage limits and claim conditions are yet to be published.
The policies were announced on 13 October 2026 at the 21st Maritime State Development Council (MSDC) meeting in Mumbai. This was the council's first meeting as a statutory body under the Indian Ports Act, 2025.
The policies come under the Shipbuilding Development Scheme, part of the ₹69,725 crore shipbuilding and maritime package approved by the Union Cabinet in September 2025.
Shipbuilding Financial Assistance Policy and the Shipbuilding Development Scheme
The Shipbuilding Financial Assistance Policy (SBFAP) is a Government of India scheme that gives Indian shipyards a cash support of a fixed percentage of the price of each ship they build. It helps them compete with cheaper shipyards in China, South Korea and Japan. In September 2025, it was renewed and widened into a bigger three-part package, along with a Maritime Development Fund for long-term loans and a Shipbuilding Development Scheme to build capacity and cover risks.
The two new credit risk insurance policies are part of the Shipbuilding Development Scheme's risk-coverage pillar. They tackle a key weakness of Indian yards: being stuck with big losses if a buyer delays payment or walks away midway through a multi-year build.
Export Credit Guarantee Corporation of India (ECGC): India's Export Credit Insurer
ECGC Ltd is a government-owned company that protects Indian exporters if a foreign buyer does not pay, or if events in the buyer's country (like war or currency controls) stop the payment. It also gives cover to banks that lend to exporters. This makes banks more willing to lend, and exporters more willing to sell to new markets. ECGC works under the Department of Commerce, Ministry of Commerce and Industry, and is headquartered in Mumbai.
ECGC already insures exporters against foreign buyers who fail to pay. Its new SbPCP brings the same kind of protection to Indian shipyards building ships for foreign buyers, while New India Assurance covers orders from Indian buyers.
- New policies: Shipbuilding Project Credit Risk Insurance Policy (SbPCP) by ECGC Ltd for export projects; Business Credit Shield Policy–Shipbuilders (BCSPS) by New India Assurance for domestic projects
- Government support: premium subsidy and backing for insurers on claims
- Announced at: 21st Maritime State Development Council meeting, Mumbai, 13 October 2026 (first meeting as a statutory body under the Indian Ports Act, 2025)
- Parent scheme: Shipbuilding Development Scheme (₹19,989 crore)
- Overall package: ₹69,725 crore, approved 24 September 2025
- Same meeting: all ports asked to adopt the One Nation One Port Process, join the Maritime Single Window and Sagar Setu, and publish tariffs electronically by March 2027
- India's share of global shipbuilding: less than 1%