Cabinet clears policy to boost shipbuilding in India

A Rs.4,000 crore ten-year policy aimed at boosting shipbuilding and ship repair industry in India under the 'Make in India' initiative was cleared on Wednesday by the Union Cabinet.

The policy 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.

Shipbuilding and ship repair industry in India is important because it has the same impact as infrastructure sector due to higher multiplier effect on investment and turnover, Shipping Ministry statement said.

"A policy for the grant of financial assistance to shipyards, after delivery of ship, to counter cost disadvantages at 20 percent of the contract price or the fair price, whichever is lower; such assistance is to be reduced at three percent every three years and will be given for all types of ships," it added.