Lok Sabha Question No. 2146 (UNSTARRED), answered on 2018-03-08
Subject: Shipyards
Ministry: SHIPPING
Asked by: GEETHA KOTHAPALLI

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.2146 TO BE ANSWERED ON 8th MARCH, 2O18

## SHIPYARDS

## 2146. SHRIMATI KOTHAPALLI GEETHA:

Will the Minister of SHIPPING be pleased  to state:

## fdqf{-c-FIdi

- (a) whether twenty seven  private  shipyards in the country  which are incurring massive losses due to debt and lack of work are likely to get any assistance frrlm the Government and if so, the details thereof,
- (c) whether most of these orders are likely to be outsourced to such private shipyards and if so, the details thereof; and
- (b) whether the Ministry of Defence has agreed  to provide orders worth Rs. 50,00i1 crore to the Cochin Shipyard and if so, the details  thereof;
- (d) the details of the Memorandum of understanding  signed by various stakeholdt:rs including Major Ports State Maritime Boards  and Public sector  Undertaktngs during the Maritime lndia Summit-2016?

## ANSWER

MINISTER OF STATE tN THE MINISTRY OF SHIPPING (SI1RI PON. RADHAKRISHNAN)

- (a)Yes,Madam.TheGovernmenthasintroducedaRs.4000CroresFinancial Assistance Policy  (FAP) for lndian shipyards for a period of 10 years, for contracts secured between  01 04.2016 and 31 .03.2026  (including these dates), under  rvltich financial assisiance  equal to 20% of the lower of "Contract Price" or the "Fair Price" will be extended to lndian shipyards for each vessel built by them. This rate of 20 per cent will be reduced by 3 per cent every three years.  Provided that at the time of releas,: of financial  assistance,  if the actual  payment  received for a vessel is lower than the contractual  price or fair  price then financial assistance  will be given on the actual  paynrent received.
- (b)Currently,thereiSnoproposalforprovidingordersworthRs.50,000croretothe CochinShipyardLtd(CSL)bytheMinistryofDefence.Sincetheyear200S,CSLhas been engaged in construction of the lndigenous Aircraft carrier  for the lndian Navy The Government  approved,  total value of the contract is Rs. 19341 crores which is br:ing executed in a phased  manner.

- (c) Does not arise.

(d) During the Maritime lndia Summit  2016, one hundred and fo(y one (141) Memoranda of Understanding (MoU)  were signed by various stakeholders, covering different aspocts such as procurement, setting up of infrastructure  facilities including  construction of  jetlies, construction of vessels,  development  of navigational aids, maritime  education  etc. I he number of MoUs entered by stakeholders with different  entities, including private  entities, are as follows: (a) Major Ports.  83 (b) lnland  Waterways Authority  of lndia (lWAl) :t, (c) Directorate  General  of Lighthouses  and Lightships  (DGLL) : 4 (d) Cochin Shipyard Limited : 3 (e) Shipping  Corporation  of lndia : 6 (f) Dredging  Corporation  of lndia : 3 (g) lrrr.iiari Maritime university  r 6 (h) Maharashtra  Maritime Board : 11 (i) Gujarat Maritime Boerrd  : 9  O  Tamil Nadu Maritime Board 1 (k) Petronet LNG : 2 (t) lndian  ports  Rail Corporation Ltd.: 1 (m) Bharat Earth Movers Ltd. (BEML): 1 (n) Andaman Lakshdweep  HarLrour Works: 2 (o) Others: 4