Govt may raise incentives, provide VFG to make India global ship-building hub

livemint.com:

₹5,000-crore package is being worked out through a new VGF scheme to incentivise construction of inland vessels, with plans to later extend the support for entities manufacturing sea-bound vessels including cruise ships.One of the two persons said that under SBFA, the incentives in the form of 20% capital support may be reinstated for all kinds of shipbuilding, with the period of incentives being extended by four years from present sunset period of 2026 to align it with Maritime India Vision 2030. Under the Maritime India Vision, India aims to develop world-class mega ports, transhipment hubs and infrastructure modernization of ports.The SBFA scheme may be considered for further extension by another six years till 2036, in line with new targets set under the recently formulated The Amrit Kaal Vision 2047, the person quoted above said.Also Read: What an ‘Indian Club’ means for the country's shipping industryIn addition, a new VGF scheme may be launched to encourage the construction of inland vessels and ships with plan to extend this support in addition to any other incentive programmes for manufacturing commercial blue water ships.Under SBFA, financial assistance is provided to domestic shipyards for shipbuilding contracts signed between 1 April 2016 and 31 March 2026 with the rate of financial assistance starting at 20% in 2016 and diminishing to 11% in 2026.