Finance Minister Nirmala Sitharaman, who on Saturday presented her eighth straight Union budget, announced the continuation of customs duty exemption on inputs and components used for manufacturing of ships for another 10 years.
The announcement assumes significance as the country is looking to promote domestic shipbuilding to boost international trade.
She also announced that the shipbuilding financial assistance policy will be revamped by the government.
The minister noted that large ships above a specified size will be included in the infrastructure harmonized master list (HML).
The Union budget also proposed to facilitate ‘Shipbuilding Clusters’ in a bid to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem.
Further, the finance minister said a Maritime Development Fund with a corpus of Rs. 25,000 crore will be set up, with up to 49 per cent contribution by the government, and the balance from ports and the private sector.
"More power to India's shipyards as we aim to be a Top 10 shipbuilding nation in the world. Shipbuilding Financial Assistance Policy (SBFAP) will be revamped to address cost disadvantages," wrote Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal, welcoming the announcement.
The government will also bring a framework for sustainable harnessing of fisheries from the Indian Exclusive Economic Zone and high seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands, the minister said.