The has approved a scheme to promote flagging merchant ships in the country.
Highlights:
In accordance with the Atmanirbhar Bharat objectives, the Cabinet approved a scheme to provide subsidies to merchant ships in India.
Indian shipping companies will receive subsidies in global tenders conducted by ministries and central public sector enterprises (CPSE).
The government will provide a subsidy of Rs. 1,624 crore over a five-year period. This will be provided to shipping companies in the global tenders conducted by ministries and CPSEs for importing government goods.
Ships flagged in India after February 1, 2021, whose age is between 10 and 20 years at the time of flagging in India, will receive extended subsidy support at 10% of the quoted price provided by L1 foreign shipping companies, or exercise the actual difference between the quotation provided by the Indian flag vessel with the right of first refusal (ROFS) and the quotation provided by the L1 foreign shipping company, whichever is smaller.
The rate at which subsidy support is extended would be reduced by 1% per year until it reached 10% and 5%, respectively.