The central government has taken important steps to give impetus to the 'Self-reliant India' campaign in the field of shipbuilding. The government has amended the Right of First Refugee (ROFR) licensing rules, which will give priority to indigenous vessels in freight.
Union Minister Mansukh Mandavia told on Thursday that in order to promote 'Make in India', this priority will be given to those ships which will be made in India and their owners will also be with the Indian owner of any Indian company.
According to the Union Minister, this will give a boost to the 'Make in India' campaign as well as give a strategic boost to the domestic shipping industry and will also create a large number of new jobs. He said the government aims to increase India's current one percent stake in the global shipping industry to 3 percent in the next five years.
The minister termed this policy change as a 'bold step' towards Prime Minister Narendra Modi's promotion of the domestic industry. He said the Ministry of Shipping reviewed the ROFR licensing condition of hiring a ship or ferry through a tender process in accordance with the government's Make in India policy. Mandavia said, India usually handles four types of Exim cargo at its ports.
Let us know that the central government already gives a 20 percent discount for building ships within the country. This exemption comes under the Shipping Financial Assistance Policy implemented in 2016 by the Ministry of Shipping in a long-term rebate campaign. To date, a subsidy of Rs 61.05 crore has been given. This exemption is planned to be given by 2026.
More indigenous than lower bidding foreign company
The Union Minister said, even if an international shipbuilding company makes the lowest bid in the tender process, the 'expensive bid for Indian-made, Indian tricolor, and Indian-owned ships will be given priority under the ROFR.
This is how the priority will be decided
The first priority will be given to an Indian company operating entirely in India and owned by an Indian ship.
The second priority would be that in which the ship may be made from abroad, but the operator company and the owner are Indian.
The third priority will be given to a ship built in India, the operator of which is a foreign owner.
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