Govt may revive subsidy for shipbuilding industry

Govt may revive subsidy for shipbuilding industry


New Delhi: The government is planning to extend the subsidy for shipbuilding industry, a move that is likely to boost India’s share in the global market and create up to 2.5 millions new jobs.

“Cabinet note on the extension of subsidy for shipbuilding industry will be circulated this week. We will get comments on that which would be sent to the highest authority for taking a decision," Minister of Shipping, Road Transport and Highways T R Balu said while addressing at a Global Conference on Shipbuilding Industry.

A subsidy of 30% for shipbuilding industry was discontinued from 14 August, 2007. Shipbuilding industry has been trying hard to get the extension of the subsidy scheme.

“The extension of this scheme, which was withdrawn by the government last year, would bear fruits. This would result in increasing India’s share in shipbuilding orders from present 1% to 7-8% and create about 2.5 million new jobs, " Harishanker Subramaniam, Head, Infrastructure and Governance, KPMG, said commenting on the findings of a study carried out by the consultancy firm.

He further said, “If we build one ship, 750 new jobs are created. Apart from that, ancillary sector grows. There are many indirect jobs also created. With increasing offshore oil exploration and trade activities, this sector is bound to grow in the coming days."