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Guidelines for Implementation of Shipbuilding Financial Assistance Policy. (2016-26) reg.
**Summary for Indian Seafarers**
Applicable to:
All Indian shipyards
Effective Date:
01.04.2016
Superseded Circulars:
Previous guidelines issued on 04.07.2016
Key Changes and Requirements
1. Eligibility and Application
Vessels must be delivered within 3 years of contract signing. Specialized vessels may have an extended period of up to 6 years.
- Application: Submit online within 45 days of contract signing. Include contract, specs, bank details, and affidavit.
- Valuation: For non-standard vessels, obtain valuations from three randomly selected international valuers.
2. Financial Assistance
Financial assistance is granted based on the lowest of contract price or fair price, converted to Indian Rupees.
- Rate: Varies annually, ranging from 20% to 11%.
- Limit: Maximum financial assistance of Rs. 40 crores for vessels other than specialized ones.
II/4 List of specialized vessels
- LNG/LPG Carrying Vessels
- Passenger Vessels with capacity ≥500
- Chemical Tankers
- Floating Drilling/Production Platforms
- FPSO, FSO, FSRU, MODU Rigs
Important Note
Ensure that the major portion of the hull is constructed and assembled in India. Also, installation and commissioning of major machinery and equipment, and tests/trials must be done in India.
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