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| Shipbuilding firms likely to claim Rs 4,000 cr subsidy |
| Press Trust Of India / New Delhi Apr 07, 2009, 01:17 IST |
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Shipbuilding firms, including ABG Shipyard, Pipavav Shipyard, Bharti Shipyard and Larsen & Toubro, are likely to claim subsidy of over Rs 4,000 crore in the next four years from the government.
According to industry sources, Shipbuilding companies are gearing up to claim subsidy, given by the government to encourage private sector participation in shipbuilding in the country.
“We can claim Rs 1,700 crore for contracts entered up to August 14, 2007, as ABG Shipyard has deliveries lined up till 2012-13,” ABG Shipyard Chief Financial Officer Dhananjay Datar told PTI.
A subsidy of Rs 120 crore is already due as per the present delivery position, he said.
Pipavav and Bharti Shipyards have also plans to claim about Rs 1,000 crore each from the government, while Larsen & Toubro and some others may claim about Rs 300 crore each, sources said. An L&T official said on conditions of anonymity the company’s current status indicated that it could claim Rs 375 crore from the government.
“Pipavav Shipyard may claim about Rs 1,000 crore subsidy from the government for contracts entered (into) within (the) stipulated period as and when it starts delivering,” a source added.
Bharti Shipyard has plans to claim about Rs 1,000 crore over the next few years depending upon delivery plans, most of which are scheduled for the period till 2011.
Officials of Pipavav Shipyard and Bharti Shipyard could not be reached for comments despite repeated attempts.
The government had approved a move to disburse subsidy for ongoing shipbuilding contracts entered into up to August 14, 2007.
“... Subsidy shall be released for all the cases for which contracts had been signed by 14th August, 2007, as it is the committed liability of the Government of India,” the Cabinet Committee on Economic Affairs said in a statement on February 26, 2009.
According to the arrangement, the subsidy will be disbursed only when the shipyard concerned delivers the ships to its customers. In case a buyer cancels order due to any reason, the shipyard will not receive any subsidy for that order.
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