Shipping Ministry amends licensing conditions to boost shipbuilding in India

In line with the Union government’s commitment towards Make in India policy, the Shipping Ministry has introduced amendments in the right of first refusal (ROFR) licensing conditions. The amendments aim to promote the demand for ships built in India by giving priority to the chartering of vessels built and flagged in India while owned by Indians at the same time.

Moreover, the ministry has also made provisions for long-term subsidy for activities of shipbuilding under the shipbuilding financial assistance policy for the period: 2016 to 2026. The ministry has to date disbursed Rs 61.5 crore under this policy. The government aims to incentivize shipbuilding further by providing business support and additional market access to India built ships.

The revised guidelines will undoubtedly boost domestic shipbuilding as well as the shipping industry. Mansukh Mandaviya, Minister of State for Shipping (I/C) described it as a giant step towards Aatma Nirbhar Shipping  as through self-reliance it will promote Make in India initiatives while giving a strategic boost to domestic industry of shipbuilding that will further contribute towards the country’s economic growth.

Leave a Reply

Your email address will not be published. Required fields are marked *