A subsidy scheme of ₹1,624 cr. for a period of five years for shipping companies also announced
Seven major ports worth ₹2,000 crore will see their operations privatised in the year 2021-2022, Finance Minister Nirmala Sitharaman said.
The Finance Minister also announced a subsidy scheme of ₹1,624 crore for a period of five years for Indian shipping companies to encourage more merchant ships with Indian flags. “This initiative will enable greater training and employment opportunities for Indian seafarers,” Ms. Sitharaman added.
The Budget also envisages boosting the recycling of ships at Alang in Gujarat. The Minister said the capacity of recycling shipyards would be doubled from 4.5 million light displacement tonne by 2024.
India has enacted Recycling of Ships Act, 2019 and acceded to the Hong Kong International Convention.
Sitharaman said post-enactment of the law, around 90 ship recycling yards at Alang in Gujarat have already achieved HKC-compliant certificates.
Ports, Shipping and Waterways Minister Mansukh Mandaviya has recently said that India aspires to grab at least 50 per cent of the global ship recycling business.
The country’s share in the ship recycling business is around 30% at present.