New guidelines will incentivise shipbuilding within the country
New guidelines will incentivise shipbuilding within the country

Ships built in India to get priority in chartering under revised guidelines

ANI | Updated: Feb 18, 2019 15:47 IST

New Delhi [India], Feb 18 (ANI): The government has revised guidelines for chartering of ships by providing the right-of-first-refusal to ships built within the country, a move to promote the Make in India initiative and incentivise shipbuilding activity.
Earlier, the right of first refusal was reserved for Indian flag vessels as per relevant provisions of the Merchant Shipping Act 1958.
Now when a tendering process is undertaken to charter a vessel, a bidder offering a ship built in India will be given the first priority to match L1 quote, said an official statement issued on Monday.
It is expected that the initiative will increase the demand for such vessels, providing them with additional market access and business support.
A policy in this regard will be announced in Mumbai by Union Shipping Minister Nitin Gadkari during the two-day Regional Maritime Safety Conference beginning on Tuesday.
The government has taken several steps to promote shipbuilding in the country, especially by providing long-term subsidy under the Shipbuilding Financial Assistance Policy (2016-2026).
A budgetary provision of Rs 30 crore was earmarked in 2018-19 for providing financial assistance to all shipyards (excluding defence shipyards). An amount of Rs 11.89 crore has already been disbursed to three shipyards.