Financial assistance for 2016-26 contracts
A New Shipbuilding Financial Assistance policy has been in place since 9 Dec 2015 for assisting Indian shipyards’ shipbuilding contracts signed during 2016-2026, parliament was told on 12 Dec 2019.
Minister of State for Shipping Mansukh Mandaviya informed the house that to promote shipbuilding at Indian shipyards, the Government had approved the policy on 9 December 2015.
Financial assistance equal to 20% of the lower of “Contract Price” or the “Fair Price” or actual payments is being received by shipyards for each vessel built over a period of at least 10 years, commencing 2016-17. This rate of 20% is reduced by 3% every three years.
The Minister informed that only those vessels, which are constructed and delivered within a period of three years from the date of Contract, are eligible for financial assistance under the policy.
Provided that, in case of specialized vessels, the competent authority may grant in principle approval for construction and delivery of such vessels within a specific period even beyond the aforesaid three years, but not exceeding six years, when the shipyard applies for such approval for the vessel under the policy guidelines, he said.
Thereafter the delivery period provided for in this Clause shall be such extended period as permitted by the Competent Authority.
The guidelines define vessel as all types of floating crafts or structures built under the classification of one of the Recognized Organizations but shall exclude the following crafts:
Vessels built for Indian buyer or ship owner, which are less than 24 meters in length, except classed dredgers of length of 10 m and above (registered length/rule length as shown in the registry certificate/tonnage certificate);
However, for export orders minimum 24 m length restriction is not applicable;
Vessels made of wood irrespective of their lengths;
Vessels built for defence purposes or for use by Navy or Coast Guard;
Vessels built under contracts secured on nomination basis from the Central or State Government or their agencies except those secured from the Central or State Public Sector Enterprises. fiinews.com
