In order to promote shipbuilding industry, the union shipping ministry has lined up measures which include providing cheap loans to the firms, PK Sinha, union shipping secretary said.
The shipping ministry has requested the finance ministry to give an interest subvention scheme for the shipbuilding industry as the sector grapples to attract commercial shipbuilding orders.
Earlier, the shipping ministry had sought a 15 percent subsidy scheme for the shipbuilding industry which the finance ministry was not keen on implementing.
The shipping ministry wants the government to create a level playing field for the industry as compared to their global peers by offering certain schemes to improve the situation.
Shipbuilding industry presently contributes 0.1 percent to the worldwide shipbuilding industry and the ministry is looking to boost the share to at least 5 percent in the next few years.
The government withdrew the earlier subsidy scheme in 2007 and the domestic shipbuilders have been looking forward to the defence manufacturing industry to receive fresh orders.
Further, local shipping firms are importing vessels from outside the country in order to take advantage of cost differentials.
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