Shipyards Association Of India News

To promote Government of India’s ambitious ‘Make in India’ programme and to encourage domestic shipbuilding by providing a level playing field vis-a-vis foreign shipyards, the Government had approved the Shipbuilding Financial Assistance Policy for Indian Shipyards in December 2015. This policy provides Rs. 4000 Crores (USD 773mln) financial assistance to shipyards for 10 years for contracts secured between 01.04.2016 and 31.03.2026 (including these dates). The Shipyards Association of India had raised certain issues with regard to the previous web application which had been launched in June 2016 for processing applications for financial assistance under the policy.

Shipbuilding has always been close to his heart, but Vijay Kumar’s greatest desire is to see his country, India, exploit the benefits of shipbuilding for the greater good of India’s economy as a whole. To date, the shipbuilding business in India has come with more promise than production, with its market share at a mere one percent of global shipbuilding activity, Kumar, Managing Director of Bharati Shipyard Ltd., is determined to help grow the shipbuilding industry not just for the good of his company, but for the good of the country as a whole. He envisions, with government support, a dynamic growth in India’s shipbuilding market, projecting its output to soar to a global market share of between 5 to 7.5 percent in the next 10 years.

“The recent spate of new-building orders from Greek ship-owners is a tangible sign of recovery and has reignited the interest of Asia’s traditional shipbuilding superpowers Korea, Japan and China, who will field their biggest ever participation at Posidonia this year,” said Theodore Vokos, Project Manager, Posidonia Exhibitions S.A., the organizers of Posidonia 2010. The trade shipping event will be held for the 22nd time in Greece, June 7th to 11th at the Hellenikon Exhibition Centre.

The ministry of shipping is considering reviving subsidy on shipbuilding to enable the industry to be globally competitive. Currently, ’s share of global shipbuilding orders stands a minuscule 1percent. The subsidy scheme had expired on August 14, 2007. T R Baalu, Union minister of shipping, road transport and highways, said the ministry is thinking of circulating a cabinet note on subsidy this week. The previous subsidy scheme provided a 30% incentive on the contract value of ocean-going merchant vessels more than 80 metres in length sold to Indian companies, and on all ships sold to foreign firms. A report by audit and consultancy KPMG on shipbuilding subsidies across the globe last year showed that Indian yards suffer a minimum cost disadvantage of 32-37% on the price of a typical ship.

Mumbai-based Garware Offshore Services Ltd., a company that offers ships for oil and gas exploration activities, plans to enter the shipbuilding business by setting up an exclusive facility for making offshore support vessels. This shipbuilding yard will be a joint venture with Norway-based ship manufacturer Havyard Leirvik AS, promoted by Havyard Group AS. Havyard Leirvik is a leader in making offshore ships, ice-breaking ships and other types of specialized vessels. According to the Shipyards Association of India, shipbuilding will entail an investment of about $76.1m by 2017. Reportedly, the venture could be 50:50, though nothing has been finalized.