Second phase of Shipbuilding Financial Assistance Policy on the anvil

The government is set to provide support of over Rs 20,000 crore for the rollout of the second phase of the Shipbuilding Financial Assistance Policy and the development of four Greenfield shipbuilding and repair hubs in the next six years. For developing the greenfield shipbuilding and repair hubs, four land parcels of 2,000-3,000 acres each have been identified in Odisha (Kendrapara, near Paradip Port), Andhra Pradesh (Dugarajapatnam), Gujarat (Kandla) and Tamil Nadu (Tuticorin). The thrust on shipbuilding comes amid a requirement of around 112 ships (estimated cost Rs 85,700 crore) for carrying crude, petroleum products, LPG, LNG, black oil, bitumen and other products in the next five years. Domestic shipyards are currently capable of producing only 28 such ships. So, considering the demand, it’s the right time to roll out the scheme for developing new shipbuilding hubs, said a report.

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