The shipping ministry has given shipbuilders who receive financial aid from the government a one-year reprieve. The Director General Shipping (DGS) has been given authority to grant a one-year extension for construction and delivery of boats for contracts signed between March 24, 2021, and March 31, 2022, according to an office order. This is being done in light of the global supply chain system being affected by COVID mutations. Under the Shipbuilding Financial Assistance Policy, the Centre has authorised financial assistance for 47 vessels worth Rs 155 crore (SBFA). These ships have a combined contract value of Rs 850 crore.
In response to queries from ET, the shipping ministry had said that 95 applications have been received till now seeking an in-principle approval for 170 vessels with contract value of Rs 2,620 crore. The guidelines of the policy have been in force from April 1, 2016 and shall be applicable for shipbuilding contracts signed between April 1, 2016 and March 31, 2026.
