The Minister of State for Shipping Shri Pon Radhakrishnan said that the Government has introduced a Rs.4000 Crores Financial Assistance Policy (FAP) for Indian shipyards for a period of 10 years, for contracts secured between 01.04.2016 and 31.03.2026. Under this scheme financial assistance equal to 20% of the lower of "Contract Price" or the "Fair Price" will be extended to Indian Shipyards for each vessel built by them.
This rate of 20 per cent will be reduced by 3 per cent every three years. Provided that at the time of release of financial assistance, if the actual payment received for a vessel is lower than the contractual price or fair price then financial assistance will be given on the actual payment received.
During the Maritime India Summit 2016, one hundred and forty-one (141) Memoranda of Understanding (MoU) were signed by various stakeholders, covering different aspects such as procurement, setting up of infrastructure facilities including construction of jetties, construction of vessels, development of navigational aids, maritime education etc. The number of MoUs entered by stake holders with different entities, including private entities, are as follows: (a) Major Ports : 83 (b) Inland Waterways Authority of India (IWAI) :5 (c) Directorate General of Lighthouses and Lightships (DGLL) : 4 (d) Cochin Shipyard Limited : 3 (e) Shipping Corporation of India : 6 (f) Dredging Corporation of India : 3 (g) Indian Maritime University : 6 (h) Maharashtra Maritime Board : 11 (i) Gujarat Maritime Board : 9 (j) Tamil Nadu Maritime Board : 1 (k) Petronet LNG : 2 (l) Indian Ports Rail Corporation Ltd.: 1 (m) Bharat Earth Movers Ltd. (BEML): 1 (n) Andaman Lakshdweep Harbour Works: 2 (o) Others: 4.
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