Gujarat plans incentives for shipbuilding to boost industry

As it talks about 'portsperity' along its 1,600-km long coastline, the state government has made provisions in the new industrial policy to boost shipbuilding and ship repair industry in Gujarat. The government is planning to offer special incentives for the sector with a vision to "augment and enhance efficiency in ports-related services and make Gujarat a logistic hub.

The government task force has made recommendations to offer capital and interest subsidies for shipbuilding industry in the state and also offering land at concessional prices.

Reimbursement of stamp duty and 5% interest subsidy for 5 years is also on the cards. The task force has recommended a greater focus on customer's needs (shippers and consignees), support "Door to Door" inter modal transport, stimulate mode shift, increase efficiency apart from innovativeness and exploitation of technology and utilization of newest information and communication technology

"Shipbuilding is a very high risk and high cost industry. So the government is mulling capital subsidy," says a senior government official. According to him special provisions will be made for capacity building in ship building and institutes and training centres will be encouraged by giving concessional land.

While the government is on its way to develop 10 ports, it is essential to make its ancillary services at par with the international standards. Gujarat has been emerging as a major shipbuilding destination. At the global investors' summit last year, logistics and shipping companies in the port sector had signed MoUs worth Rs 13,500 crore. The state, which aims to account for 50 per cent of the nation's shipbuilding activity, has decided to come up with a shipbuilding policy.