Lok Sabha Question No. 2296 (UNSTARRED), answered on 2018-03-08
Subject: Subsidy Scheme for Water Transport Vehicles
Ministry: SHIPPING
Asked by: P.K.SREEMATHI TEACHER

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.2296 TO BE ANSWERED ON 8th MARCH, 2018 SUBSIDY SCHEME FOR WATER TRANSPORT VEHICLES

## 2296. SHRIMATI P.K,

SREEMATHI TEACHER:

Will the Minister of SHIPPING  be pleased  to state:

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- (a) whether the Government has implemented any scheme for providing subsidy  to the production sector of water transport vehicles;
- (b) if so, the details thereof;
- (c) the eligibility conditions  stipulated for getting this subsidy;
- (d) whether this subsidy has been extended to the vehicles where the owner an(l builder are the same persons and if so, the details thereof; and
- (e) if not, whether the Government  proposes  to amend  the scheme/guldelines  so as to include  such vehicles under the scheme and if so. the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING

(SHRI PON. RADHAKRISHNAN)

(a)&(b):(i)There  was a shipbuilding subsidy scheme  of Governmenl of lndia for construction and delivery  of vessels  and not water transport vehicles.  This scheme was operational for all the lndian  shipyards from 2002 to 2007. Shipbuilding subsidy  @  30% on contractual price or reasonable price  or actual  payment received,  whichever is lowest' was provided  to private sector  shipyards after delivery  of vessels and to public  sector shipyards as per stage payments received  by the shipyards. The scheme expired on 14th August 2007 Government decided in March 2009 to llquidate the committed liabilities in respect of shipbuilding  subsidy for shipbuilding contracts signed upto 14th August 2007 Budgetary provision of Rs.5152 crore up to 31st March 2014 was approved by the Government. Under this scheme, shipbuilding subsidy of Rs.1142 crorc has t)een released to lndian shipyards  till 31 .03.2014. A total number of 121 vessels  have treen delivered by the lndian shipyards under the scheme.

- (ii) Further,  the Union  Cabinet approved  the Shipbuilding Financial Assistance PDltcy for lndian  shipyards on December 09, 2015 for shipbuilding contracts signed from

01.04.2016  to 31.03.2026 (including these dates) along with a budgetary provision of Rs. 4000 crore . under this scheme, financial  assistance of 2oo/o an contractual  price  or"fair price  or actual payments  received for a vessel, whichever  is lowest, would  be provided after delivery  of vessels.  The scheme is being impremented  online  by Directorate  General of shipping. Applications  for in-principre  approvar  for 26 (twenty six) vessers have been received by Directorate  Generar  of Shipping from lndian shipyards.  ln principre  approval for 22 (twenty  two) vessers has been granted  by Directorate Generar  of shipping as on 05.03.2018.  Number of applications  for release of financial  assistance  received  by the Directorate  General of Shipping as on 05.03.201g is 4 (four)

(c) The eligibility  conditions  stipulated for getting  financial assistance  under the finarrcial assistance  policy  2016-2026,  are given  in Annexure-l. Detaired guiderines  are avairabre on the website of this Minisky and are also annexed at Annexure-ll.

(d)&(e):  No, Madam.

## ANNEXU}tE-I

- Financial  Assistance will be provided  to lndian shipyards  for 10 years  for contracts secured between 01 .04.20'16 and 31 .03.2026 (including  these dates)
- Only those vessels,  which are constructed and delivered within a period of three years from lhe date of Contract, shall be eligible for availing financial  assistance under the policy.  Provided that, in case of specialized  vessels, the competent authority may grant in principle approval  for construction  and delivery of such vessels  within a specific period  even beyond the aforesaid  three years, but not exceeding  six years,  when the shipyard applies for such approval  for the vessel under the policy guidelines  and thereafter  the delivery  perrod  provided for in this Clause  shall be such extended period as permitted by the Competent Authority.
- Following vessels are excluded from financial assistance policy:
- o Vessels  built for lndian buyer or ship owner, which do not exceed length of more than 24 meters,
- o  Vessels made of wood irrespective of their lengths.
- o  Vessels built for defence purposes or for use by Navy or Coast Guard.
- o Vessels built under contracts secured  on nomination basis from the Central or State Government or their agencies except those secured from the Central or State Public Sector Enterprises.
- ln case of specialized and non standard vessels, valuation certificates from three international valuers as per the list shown  in schedule lll of guidelines are requrred to be submitted  by shipyards.  ln case of standard vessels,  fair price will be determined  on a periodic  basis by the competent authority based on internatic,nal price  trends.
- Documents  as listed in the guidelines  are requrred to be submitted  by the shipyards.