India Becomes First Country In The World To Launch Shipbreaking Credit Note

India has become the world’s first country to launch a Shipbreaking Credit Note (SbCN) under the Shipbuilding Financial Assistance Scheme, the SBFAS 2.0.

According to the scheme, shipowners who recycle their vessels at Indian facilities which comply with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships will get a tradeable SbCN.

It can be used as a subsidy for building new ships at Indian shipyards and would boost investment in the maritime sector.

The SbSN has many features which make it easy to use and exchange, like easy transferability to eligible stakeholders, a three-year validity period for shipowners and investors and digital processing to ensure transparency, efficiency and ease of access.

This would also encourage sustainable recycling practices while making Indian shipyards competent and at par with International standards.

It would also aid in India’s vision of developing a circular maritime economy and becoming a globally dominant name in shipbuilding.

The new initiative would generate new economic opportunities for stakeholders in the shipping and shipbuilding value chain while strengthening industrial capabilities and reinforcing India’s place as a major player in sustainable ship recycling and ship construction.