Shipbuilding sector demands infra status, financial help:Govt

The government has received several critical suggestions from different stakeholders to promote the local shipbuilding industry which includes grant of infrastructure status, financial assistance and tax sops, Parliament was informed today.
"Shipbuilding industry being globalised in nature, the present global downturn has also affected the domestic shipbuilding industry," Minister of State for Shipping, Pon Radhakrishnan said in a written reply to Lok Sabha.
He said shipbuilding subsidy was released to Indian shipyards till March 31, 2014.
Major suggestions received by the government from various stakeholders for promotion of local shipbuilding industry includes measures for financial assistance; grant of infrastructure status; domestic eligibility criteria; tax incentives and special dispensation for stressed shipyards, Radhakrishnan said.

He, however, added, "No time-lines for implementation can be given at this stage."
Earlier the shipbuilding subsidy scheme was extended to all Indian shipyards on October 15, 2002 and the subsidy scheme expired in 2007.
"The government decided to liquidate the committed liabilities in the year 2009 for all the cases for which contracts had been signed by August 14 2007, for another five years starting from the year 2009 and ending March 31, 2014 and accordingly, shipbuilding subsidy was released to Indian shipyards till March 31, 2014," he added.