The center provides grants for the construction of ships using offshore wind projects and submarine cables

India will now offer subsidies for vessels that help build offshore wind energy projects and lay undersea cables. The center has redesigned the shipbuilding subsidy system to include support for the manufacture of these ships.

“These changes were made after identifying the demand for the export of such vessels,” said a senior Shipping Ministry official.

The 4,000 crore Shipbuilding Financial Assistance (SBFA) provides financial assistance to Indian shipyards of up to 20% of the contract price or fair price (whichever is lower) for each special purpose ship they build.

The system was introduced to make Indian-made ships competitive with those made in other countries.

Officials say 21 shipyards of varying capacities have registered under the scheme. Prominent companies registered under the scheme include L&T Shipbuilding Ltd, Cochin Shipyard Ltd, Titagarh Wagons Ltd and Goa Shipyard Ltd.

The list of specialty vessels supported under this program now includes wind turbine installation vessels and self-propelled semi-submersibles for heavy loads and heavy transport. Wind farm service and maintenance ships as well as cable-laying ships are also funded.

A total of 15 ship types are now supported by the system, which already has ships carrying liquefied natural gas (LNG) and LPG. Chemical tankers, floating or submersible drilling or production platforms.

The recent development gains importance given the significant offshore wind energy potential being assessed on the Indian coast.

In May last year, the Ministry of Shipping granted a year-long easing to shipbuilders receiving financial aid under the scheme.

The guidelines of the Directive have been in effect since April 1, 2016 and apply to shipbuilding contracts signed between April 1, 2016 and March 31, 2026.

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