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The union ministry of shipping plans to take the Modi government’s flagship programme, ‘Make in India', a step ahead as it plans to hold a high-level workshop in Cochin on November 17 to “discuss shipbuilding, ship repair and ship designing”.
“The (union) minister is chairing a workshop in Cochin on November 17, where the related matters will be discussed and policy directive will be formulated,” said an official from the shipping ministry.
The official said that the ministry had appointed a consultant who has given some recommendations related to matters of concern.
“Shipping ministry has done a detailed, in-depth study for shipbuilding, ship repair and ship design…The consultants have come up with some recommendation, which will be discussed...We will also discuss the way forward,” he said.
The union minister has been pressing for “alternative” transport options and especially for coastal routes as it is relatively inexpensive and has “potential to create jobs”.
Also read: Coastal transportation to propel growth, create jobs: Gadkari
The Ministry of Shipping had rolled out the Shipbuilding Financial Assistance Policy in 2015 to give a nudge to indigenous shipbuilding industry. The scheme provides financial assistance to Indian shipbuilders who sign contracts between April 1, 2016 and March 31, 2026 (inclusive of these dates).
Recently, the ministry amended the guidelines of the assistance policy to guard domestic shipbuilders.
An official from Cochin Shipyard Ltd (CSL), who has been assisting the ministry for the workshop as well as for the policy formation, said that amendments were brought in place as the government was aware of the issues faced by domestic builders.
“Due to any set of reasons, Indian shipbuilders face certain negative as compared to the global builders…The government is cognizant of this,” said the official from CSL.
He said that the government had a policy to provide subsidy to shipbuilders, which got over in 2007. The new policy to provide “assistance” received the government’s nod in December 2015.
Also read: Gadkari urges auto makers to opt for coastal shipping mode to transport vehicles
“There was a shipbuilding subsidy in place till 2007… Then, in April 2016, there was a Shipbuilding Financial Assistance Policy, where the government offers you a 20 percent financial assistance on contract price if you actually win a contract for shipbuilding,” he said.
The assistance will be granted between 2016 and 2026. It will begin with 20 percent assistance and will gradually come down to 11 percent, reducing by three percentage points every third year, at the end of the period.
The official said that the “intent” of the policy is to make “shipbuilding industry more competent”
The official from the ministry said that issues related to existing policies and government’s stand on shipbuilding would be discussed with all the stakeholders during the workshop.
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