Shipbuilders to get 20% fin help

Firms, which sign shipbuilding contracts between April 1, 2016 and March 31, 2026, are entitled to 20% financial assistance under the Shipbuilding Financial Assistance Policy.

In a bid to promote the shipbuilding industry under the ‘Make in India’ initiative, the Cabinet in December last year had approved a proposal for financial assistance of 20% for ships built in the country.

“The Shipbuilding Financial Assistance Policy shall be effective for shipbuilding contracts signed during the dates, April 1, 2016 to March 31, 2026, including the said dates," the Ministry of Shipping said in guidelines for implementing the policy.

The policy, which would be in force for 10 years requires a budgetary support of Rs 4,000 crore. The financial assistance will be 20% of the ‘contract price’ or the ‘fair price’, whichever is lower, as determined by international valuers, for any vessel built in India subsequent to its delivery, the guidelines said.

The proposal also includes grant of a right of first refusal for Indian shipyards for government purchases; tax incentives and grant of infrastructure status for shipbuilding and ship repair industry.