Anil Devli, Chief Executive Officer of Indian National Ship Owners Association informed that the removal of excise and countervailing duty (CVD) is a big boost to the shipbuilders.
He said the move would see more ships being built in India now. The Rs 300-crore subsidy will increase the cash flow, Dhananjay Datar, group Chief Financial officer, ABG Shipyard, said.
The budget 2013-14 removed excise duty on ships and vessels. In his budget speech Finance Minister P Chidambaram said as a measure of relief to the shipbuilding sector, I suggest to exempt ships and vessels from excise duty. Consequently, there will be no CVD on imported ships and vessels.
Companies like Shipping Corporation of India (SCI) can benefit from the measure if the removal of this duty is passed on to shipowners. This will make a huge cost difference to shipowners.
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