To promote the indigenous ship building industry, the government on Wednesday announced exemption of customs and central excise duties on inputs used in ship manufacturing and repair.
The exemption would go back in time to take effect from November 24, 2015, said a statement from the ministry of shipping.
Though ships were imported at negligible Basic Customs Duty (BCD) and zero Countervailing Duty (CVD) in the past, ship manufacturing and repair inputs attracted normal BCD and CVD.
These duties had subjected Indian shipyards building ships for the domestic market to a cost disadvantage which had been corrected with the new move, the statement said.
BCD and CVD exemption is also aimed at propelling 'Make in India' initiative.
"The exemption will go a long way in creating a proactive environment for the growth of this strategic industry, which will not only generate considerable employment but also play a significant role in fostering economic growth and EXIM trade in the country," the statement added.
