Shipbuilding Financial Assistance (SBFA)
India has taken a significant step towards promoting its maritime sector by revamping the ship building subsidy scheme. The scheme aims to provide subsidies for vessels used in offshore wind energy projects and undersea cable laying, with the objective of making India-made ships competitive with those manufactured in other countries.
Financial Assistance for Specialized Vessels
Under the Shipbuilding Financial Assistance (SBFA), Indian Shipyards can receive financial assistance of up to 20% of the Contract Price or the Fair Price (whichever is lower) for each specialized vessel they build. This financial support will enable the shipyards to enhance their capabilities and compete effectively in the global market.
A total of 21 shipyards have already registered under the scheme, including renowned companies such as L&T Shipbuilding Ltd, Cochin Shipyard Ltd, Titagarh Wagons Ltd, and Goa Shipyard Ltd. This widespread participation indicates the industry’s interest and readiness to embrace the scheme.
The revamped scheme now includes support for a wide range of specialized vessels. In addition to wind turbine installation vessels and self-propelled semi-submersible heavy lift and heavy transport vessels, the scheme also covers wind farm service and maintenance vessels, as well as cable laying vessels. This expansion reflects the growing importance of renewable energy projects and the need for efficient infrastructure to support them.
Diverse Vessel Types
Apart from wind energy vessels, the scheme also extends its support to other types of vessels. This includes liquefied natural gas (LNG) and liquefied petroleum gas carrying vessels, chemical tankers, and floating or submersible drilling or production platforms. By encompassing various vessel categories, the scheme caters to a broader spectrum of maritime needs.
Policy Implementation and Timeframe
The guidelines of the policy came into effect on April 1, 2016. The policy is applicable to shipbuilding contracts signed between April 1, 2016, and March 31, 2026, providing a substantial window for shipyards to leverage the scheme and contribute to the growth of the maritime sector.
Promoting Offshore Wind Energy Potential
The latest development holds great significance in light of the increasing assessment of offshore wind energy potential along the Indian coastline. By offering subsidies for vessels involved in offshore wind energy projects and undersea cable laying, the scheme aligns with the country’s goals of expanding its renewable energy capacity and reducing carbon emissions.
Tags: Shipbuilding Financial Assistance • Shipping Industry
Month: Current Affairs - May, 2023
Category: Government Schemes Current Affairs
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