Make in India.. granting a strategic and economic boost to the Ship-Building Industry..!

Mumbai, February 18: In a big step to promote the Make in India initiative and incentivize ship building activity in the country, the Ministry of Shipping has revised its guidelines for chartering of ships by providing Right of First Refusal (RoFR) to ships built in India. With this, whenever a tendering process is undertaken to charter a vessel, a bidder offering a ship built in India will be given the first priority to match the quote.

 

It is further estimated that this priority given to ships built in India will raise the demand for vessels, providing them additional market access and business support.

Prior to the revision of the guidelines, the Right of First Refusal was reserved for Indian flag vessels as per the relevant provisions of Merchant Shipping Act, 1958. The existing licensing conditions have been reviewed in consonance with the Indian government’s policy of promoting the Make in India initiative and the Public Procurement and Make in India orders.

The review is also in line with the need to give a long term strategic boost and support to the domestic shipbuilding industry following the need to develop self- reliance and a strong synergy between these vital industries for the overall long term development and economic growth of the country.

“The government has taken several steps to promote shipbuilding in India especially by providing long term subsidy for under the Shipbuilding Financial Assistance Policy (2016-2026). Budgetary provision of Rs 30 crores was earmarked in 2018-19 for providing financial assistance to all Indian Shipyards, excluding Defence Shipyards. An amount of Rs.11.89crore has already been disbursed to three shipyards”, asserted the statement.