Mumbai: The government is considering a Rs100 billion package to help local shipping firms finance new vessel acquisitions as global lenders tighten up their purse strings, minister of state for shipping said on Tuesday.
“We have requested the finance ministry to consider a Rs10,000 crore package (for shipping firms),” APVN Sarma, secretary, ministry of shipping, said on the sidelines of a maritime conference.
“Foreign banks are not lending now. Traditionally they’ve been the lenders for shipping acquisitions. This is some sort of financing for acquisition of new ships by Shipping Corp of India and also by other Indian private shipping companies,” he added.
State-run Shipping Corp has planned capital expenditure to the tune of Rs150 billion in the Eleventh five year plan period and curently has an order pipeline for 29 new ships.
The government will disburse loans of up to Rs100 billion to shipping firms, Sarma said, but did not elaborate on interest rates and other details.