Subsidy Scheme

The Indian shipping industry is headed for rapid growth in view of the impetus in growth of the Indian economy over the last few years. This has resulted in some of Government of India’s (GOI) existing policies in the shipbuilding industry gaining prominence, an example of which is the Subsidy Scheme introduced in 2003, under which a subsidy of 30% can be availed of by an Indian shipyard, when it constructs a vessel in India upon receiving a Domestic Order on Global Tender basis or upon receiving an Export Order either on Global Tender basis or on Negotiated basis.

Subsidy would be available to the Indian shipyard on a domestic order provided that the order has been obtained by winning a Global Tender. The vessel to be constructed should be an "ocean going vessel" (as defined under The Merchant Shipping Act, 1958) with a minimum length of 80 meters. For Public Sector shipyards, subsidy is released as per stage payments agreed in the contract/tender document, while in case of