India funds shipbuilding

The order book position of the Indian shipyards stands at $2.2 billion at present and is expected to improve further according to T.R. Baalu, minister for shipping, road transport and highways. In order to offer incentives to shipbuilding activities, the minister proposes to extend policy to provide shipbuilding subsidy of 30% to all the Indian shipyards, including private sector beyond August 2007. The scheme, at present, is up to August 2007 but the Government has proposed to get it extended on long-term basis.

The government is also proposing to invest $1.5 billion in the shipbuilding sector to modernise infrastructure and research design base. Setting up of two large shipyards, one on the east coast and other in the west coast, is also under consideration and a committee has been set up to finalise the locations and prepare the documents to invite interested parties to submit proposals.

In addition, the government is considering providing revival packages to the Hindustan Shipyard and the Hooghly Dock and Port Engineers to the tune of $180 million and $86 million respectively. This will not only clear their past liabilities but also infuse funds for modernisation and working capital Baalu said.