Shipbuilding Financial Assistance Policy giving impetus to green-fuelled, hybrid, electric vessels
The guidelines of the Shipbuilding Financial Assistance Policy (SBFAP) scheme for Indian shipyards have been amended to include financial assistance of 30% for vessels where main propulsion is achieved by means of green fuels such as methanol/ammonia/hydrogen fuel cells. Another amendment facilitates financial assistance of 20% for vessels with electric means of propulsion or vessels fitted with hybrid propulsion system.
The amendments also include wind farm installation vessels and construction of sophisticated dredgers as specialised vessels, which are eligible to get higher financial assistance, said the Union Minister for Ports, Shipping and Waterways, Mr Sarbananda Sonowal, in a written reply to the Rajya Sabha.
From the data available in the SBFAP scheme, about 88 vessel orders have been procured by 31 shipyards during the last 4 years - domestic as well as export orders worth Rs 6,800 crore. Further, shipyards have delivered 69 vessels worth Rs 1,145 crore to domestic and international shipowners in the last 4 years, that have received assistance under SBFAP of about Rs 193 The latest initiative to provide higher SBFA funding to green-fuelled ships and hybrid vessels is expected to result in further shipbuilding orders, the Minister said.
To promote the “Make in India” policy and support the shipbuilding industry in India, the SBFAP scheme offers financial assistance to Indian shipyards for shipbuilding contracts signed between April 1, 2016 and March 31, 2026 with rate of assistance starting from 20% in 2016 and diminishing to 11% in 2026, said a release.
Source: Exim News Service: New Delhi, Dec. 6