Indian Government Extends Shipping Subsidy Scheme Until FY31
Govt extends subsidy scheme for firms flagging merchant ships until FY31
Business Standard
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The Indian government has extended its subsidy scheme for companies flagging merchant ships until the financial year 2030-31. This initiative, aimed at bolstering India's maritime capabilities, offers financial support to Indian shipping firms participating in global tenders for government cargo imports.
- 01Subsidy scheme extended for five more years until FY 2030-31.
- 02Total outlay of ₹1,624 crore (approximately $195 million USD) approved for the scheme.
- 03Subsidies include 15% for new ships flagged after February 2021.
- 04Existing ships under 10 years old can receive 10% subsidy.
- 05Ships older than 20 years are excluded from eligibility.
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The Indian Ministry of Ports, Shipping and Waterways announced the extension of its subsidy scheme for Indian companies flagging merchant ships until FY 2030-31. This initiative, originally approved by the Union Cabinet in July 2021, has a total outlay of ₹1,624 crore (approximately $195 million USD) aimed at enhancing India's maritime fleet and presence in global shipping. The scheme provides a 15% subsidy for ships flagged in India after February 1, 2021, that are under 10 years old, based on the lowest bid from foreign competitors. Existing Indian-flagged vessels younger than 10 years are eligible for a 10% subsidy. However, ships older than 20 years do not qualify for any subsidy. The shipping ministry plans to request additional funding from the Department of Expenditure if necessary to accommodate the scheme's expanded scope.
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This extension of the subsidy scheme is expected to encourage more Indian companies to invest in shipping, potentially leading to increased job opportunities in the maritime sector and reduced costs for government cargo imports.
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