The shipbuilding and maritime development reforms will be spread across the next 10 years.
Under the Shipbuilding Financial Assistance scheme, the allocated sum will be divided into financial assistance, ship-breaking credit note and the National Shipbuilding Mission.The Maritime Development Fund will be divided under the Maritime Investment Fund and Interest Incentivisation Fund.
Under the Shipbuilding Financial Assistance Scheme:
- Financial assistance will be provided to shipyards to overcome the cost differential.
- Vessels valued below ₹100 crore will get 15%, while those above ₹100 crore will get 20% assistance.
- Special, green, hybrid or specialised vessels will be given 25% assistance.
- The ₹20,554 crore assistance will be done until March 2036.
Under the Ship-breaking Credit Note Scheme:
- Credit note of 40% of the vessel’s scrap value when the vessel will be scrapped in an Indian yard.
- The notes will be reimbursable against the cost of constructing a new vessel in an Indian shipyard.
- These notes will be stackable, transferable and valid for a three-year period.
The Interest Incentivisation Fund, which is part of the Maritime Development Fund, will have a corpus of ₹5,000 crore.
Incentive of up to 3% to be provided to banks and financial institutions for loans given to Indian Shipyards.
The fund will promote investment in the sector, create 30 lakh jobs overall, facilitate green transport and also drive export growth.
Sources had told CNBC Awaaz earlier that three schemes worth nearly ₹70,000 crore could be unveiled for the shipping sector later today.
Shipping stocks had surged earlier last week when the Ministry of Finance granted “infrastructure status” to large ships, a long-standing demand of India’s shipping industry. The announcement was already made during Finance Minister Nirmala Sitharaman’s budget on February 1 this year.
Shipping Corporation had also announced that it has signed MoUs with BPCL, Indian Oil and HPCL, India’s state-run oil refiners to build and operate fleet together to support the “Atmanirbhar Bharat” vision.
Shares of Shipping Corporation of India are trading 4.1% higher at ₹232.5, while those of Garden Reach are trading 1.4% higher. Cochin Shipyard’s shares have recovered from the lows of the day and are now trading 0.8% higher at ₹1,901.
