The Hindu Business Line : Shipyards' order book stands at Rs 10,000 cr: Baalu

The order book position of the Indian shipyards stands at Rs 10,000 crore at present and is expected to improve further, Mr T.R. Baalu, Minister for Shipping, Road Transport and Highways, told the members of Consultative Committee here on Saturday.

In order to offer incentives to shipbuilding activities, the Ministry has proposed to extend policy to provide shipbuilding subsidy of 30 per cent to all the Indian shipyards, including private sector beyond August 2007.

The scheme, at present, is up to August 2007, but the Government has proposed to get it extended on long-term basis, said a release.

The Government has proposed to invest Rs 7,195 crore in the shipbuilding sector to modernise infrastructure and research design base.

Setting up of two international size shipyards, one on the east coast and other in the west coast, is also under consideration.

A committee has been set up to finalise the locations and is also preparing the documents for calling expression of interest for the purpose, he stated.

The order book position of the Indian shipyards has improved from about Rs 1,500 crore in 2002 to about Rs 10,000 crore at present, he said. This position is expected to improve further.

The Government is considering providing revival package to the Hindustan Shipyard Ltd and the Hooghly Dock and Port Engineers Ltd to the tune of Rs 814.50 crore and Rs 391.14 crore, respectively.

This will not only clear their past liabilities but also infuse funds for modernisation and working capital, Mr Baalu said.