The Shipping Ministry is pitching for about 20 per cent subsidy levels for the shipbuilding sector and has floated a Cabinet note with the proposal.
Until mid-August this year, the ship-manufacturing sector used to receive 30 per cent subsidy under the shipbuilding subsidy scheme. The Ministry has proposed continuation of the subsidy for 10 years with review after five years. It has called for maintaining subsidy levels ''in the range of 20 per cent''. Additionally, the shipbuilders may also get subsidies for large vessels only with the Ministry batting for a ''level playing field between domestic and export orders''. In the earlier subsidy regime, if ships were manufactured for exports, all types of ships were eligible for the subsidy provided the Indian firms won orders by meeting certain norms like global competitive bidding process. However, if they were manufactured for the domestic market, the subsidy was restricted to ocean-going merchant vessels that were over 80 metres in length. Thus even if ships are manufactured for the export market, a subsidy would be extended only if the ships are larger than 80 metres.
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