"The focus of the policy is to make domestically produced ships competitive with Chinese ones. Till date we have not rejected any request for financial assistance under the policy," an official told ET on condition of anonymity.
"Shipyards will have to make their own investments if they intend to undertake capacity expansion. The purpose of the policy is to support specific ship building projects."
"Financial assistance is being granted to Indian shipyards equal to 20 percent of the lower of the contract price or the fair price or actual payments received of each vessel built by them for a period of at least 10 years commencing 2016-17. This rate of 20 percent will be reduced by 3 percent every three years," said a shipping ministry statement.
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