Bhavnagar:

For promoting shipbuilding business within the country, the Union shipping ministry has reviewed the

ROFR (Right of First Refusal) licencing procedure for chartering of ships through a tender process for all kinds of needs.

Union shipping minister Mansukh Mandaviya said that “Indian origin ships are going to be promoted, a vessel built, flagged and owned by Indians are going to be given priority during the chartering of ships under the amendments within the guidelines of ROFR”.

Further, he added that “for the step-up industry within the country, we’ve decided to offer the primary refusal to the Indian companies through Make in India”.

Union Shipping Minister further added that if an Indian company has made a ship outside the country, then it shall tend second priority and third priority while if a ship has been made in India, which is foreign-flagged and foreign-owned, it’ll tend first priority. This may provide a boost to the industry in India.

“Today our share is merely one percent in shipbuilding globally, and that we have set a target of accelerating it to 3 percent in shipbuilding. We’ll move forward during this direction,” Mandaviya added.

The duration of licence to such chartered vessels shall be limited to the amount of the building of the ship, as mentioned within the shipbuilding contract. It is to be noted that the Ministry of Shipping has made provisions for long-term subsidy for shipbuilding activities under shipbuilding financial assistance policy (2016-2026).

The Ministry has already disbursed an amount of Rs 61.05 crores till date under the policy. It is and the endeavour of the Central government to further incentivise shipbuilding by providing additional market access and business support to ships inbuilt India.

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