The Ministry of Shipping has approved a set of guidelines for implementation of its Shipbuilding Financial Assistance Policy. An institutional mechanism has also been created within the Ministry for redressal of grievances arising out of matters related to the said policy.
The Shipbuilding Financial Assistance Policy was approved by the Cabinet in December last year. The policy aims to provide financial assistance to Indian shipyards for shipbuilding contracts signed between April 1, 2016 to March 31, 2026, including the said dates. 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 quantum of financial assistance shall reduce by three percent after every three years of the policy. This policy shall be in force for a period of ten years from the date stipulated in the guidelines formulated by the Government for the purpose.
Under this policy, only those vessels which are constructed and delivered within a period of three years from the date of contract shall be eligible for availing financial assistance. In case of specialized vessels, the competent authority may grant in principle approval for construction and delivery of such vessels within a specific period even beyond the aforesaid three years, but not exceeding six years.
Press Information Bureau