India will now offer subsidies for vessels that help set up offshore wind energy projects and lay undersea cable. The centre has revamped the ship building subsidy scheme to include support for manufacture of these vessels.
“These changes have been done after a demand for export of such ships was assessed,” a senior Shipping Ministry official said.
Under the Rs 4000 crore Shipbuilding Financial Assistance (SBFA), financial assistance up to 20% of the Contract Price or the Fair Price (whichever is lower) is extended to Indian Shipyards for each specialised vessel built by them.
The scheme was introduced to make India made ships competitive with those manufactured in other countries.
Officials say that 21 shipyards having various capacities have registered under the scheme. Prominent companies registered under the scheme include L&T Shipbuilding Ltd, Cochin Shipyard Ltd, Titagarh Wagons Ltd and Goa Shipyard Ltd.
The list of specialized vessels that are supported through this scheme now includes Wind Turbine installation vessels, and Self-Propelled semi-submersible Heavy Lift and Heavy Transport vessels. Wind farm service and Maintenance vessels, and Cable Laying Vessels will also be subsidised.
In all, 15 types of vessels will now be supported by the scheme that already has Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas carrying vessels. Chemical Tankers, floating or submersible drilling or production platforms.
The latest development assumes importance in light of significant offshore wind energy potential being assessed on the Indian coastline.
During May last year, the Shipping Ministry allowed a one-year relaxation to shipbuilders that are getting financial assistance under the scheme. The guidelines of the policy have been in force from April 1, 2016 and shall be applicable for shipbuilding contracts signed between April 1, 2016 and March 31, 2026.