India Govt Subsidy for Ship Building Industry
By Aiswarya Lakshmi
Tuesday, July 26, 2016
Maritime Agenda 2010-20 has inter-alia set a target to increase percentage share of India to 5% in global ship building and 10% share in global ship repair for India by 2020.
The Government of India had earlier extended shipbuilding subsidy scheme to all Indian shipyards on 25th October 2002.
The scheme expired on 14th August 2007. Government decided in March 2009 to make payments for shipbuilding subsidy for shipbuilding contracts signed upto 14th August 2007 for which budgetary provision was made upto 31st March 2014.
Out of 228 shipbuilding contracts signed during 2002-2007, subsidy amounting to Rs. 1142 Crores has been released for construction of 121 vessels. A new shipbuilding financial assistance policy has been announced for orders secured during April 1, 2016 to March 31, 2026.
The Department of Economic Affairs has notified the inclusion of standalone ‘Shipyards’ in the Harmonized Master List of Infrastructure Sub-sectors on April 13, 2016. Infrastructure status would enable Indian shipyards to avail cheaper and long-term financing of capital.
The attendant tax benefits would enable the shipyards to reduce their cost disadvantage and invest in capacity expansion thereby giving a boost to the Indian shipbuilding industry.