Govt focused on facilitating shipping & shipbuilding

The government recently highlighted in Parliament the steps it has taken to encourage the shipping and shipbuilding sectors in the country.

The Institutional Mechanism on Infrastructure, working under the Department of Economic Affairs, has recommended inclusion of standalone shipyards undertaking shipbuilding and ship repair in the Harmonised List of Infrastructure sectors.

To promote shipbuilding and repair in Indian shipyards, the Union Cabinet has approved the Shipbuilding Financial Assistance Policy for Indian yards, for contracts signed during the ten year period from 2016-2026. The Cabinet has also approved that all government departments or agencies, including CPSUs, have to provide Right of First Refusal to Indian shipyards while procuring or repairing vessels meant for governmental or own use till 2025.

To provide a level playing field for indigenously-built ships vis-à-vis imported ships, the government has exempted Customs and Central Excise duty on inputs used in the manufacture of ships and relaxed the limitation to operate shipyards under Customs control in terms of Section 65 of the Customs Act, 1962.

To promote ease of doing business in the sector, the Union Budget 2016-17 laid out a simplified procedure for tax compliance for the shipyards while procuring duty-free goods for shipbuilding and ship repair.

To bring down the cost of construction of barges, river sea vessels (RSV Types 1 & 2) and port and harbour crafts, and to meet the demand for steel by ship and barge builders, the government has decided that the re-rolled steel obtained from recycling yards/ship breaking units would be certified for use in construction of these vessels, said a release.

Write a Comment

Your email address will not be published.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