Centre provides funding for ships that deploy offshore wind projects and subsea cables
India will now provide subsidies for vessels that assist in the establishment of offshore wind energy projects and the installation of undersea cables. The center has revised the shipbuilding subsidy scheme to include support for the production of these vessels.
“These changes were made after assessing the demand for such ships’ export,” a senior Shipping Ministry official told ET.
Under the Rs 4000 crore Shipbuilding Financial Assistance (SBFA), Indian Shipyards receive financial assistance of up to 20% of the Contract Price or the Fair Price (whichever is lower) for each specialized vessel built by them.
The scheme was implemented to make Indian-made ships competitive with those made in other countries.
According to officials, 21 shipyards of various sizes have been registered under the scheme.
L&T Shipbuilding Ltd, Cochin Shipyard Ltd, Titagarh Wagons Ltd, and Goa Shipyard Ltd are among the prominent companies that have registered under the scheme.
Wind turbine installation vessels, as well as self-propelled semi-submersible heavy lift and heavy transport vessels, have been added to the list of specialized vessels supported by this scheme. Subsidies will also be provided for wind farm service and maintenance vessels, as well as cable laying vessels.
The scheme will now support 15 different types of vessels, in addition to Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas carrying vessels. Chemical tankers, submersible or floating drilling platforms, and production platforms.
The most recent development is significant in light of the significant offshore wind energy potential being assessed along the Indian coastline.
The Shipping Ministry granted shipbuilders receiving financial assistance under the scheme a one-year reprieve in May of last year.
The policy guidelines went into effect on April 1, 2016, and will apply to shipbuilding contracts signed between April 1, 2016, and March 31, 2026.