Govt considering revival of shipbuilding subsidy

T R Baalu, minister of shipping, road transport and highways, has circulated a cabinet note towards this end for comments from various ministries.The note spells out that the revised subsidy scheme would be on the pattern of the previous one, which had expired on August 14, 2007. The scheme provides a 30% incentive on the contract value of ocean-going merchant vessels more than 80 metres in length sold to Indian companies, and on all ships sold to foreign firms. According to estimates, the subsidy amount will be to the tune of Rs 21,000 crore.