For information of all shipyards and public : New financial assistance policy for shipbuilding in India (2016-26).

**Summary for Indian Seafarers: New Financial Assistance Policy for Shipbuilding in India (2016-26)** **Info Card** - **Applicable to:** All Indian shipyards - **Effective Date:** April 1, 2016 to March 31, 2026 - **Superseded Circulars:** None mentioned **Key Changes and Requirements** 1. **Eligibility and Validity** - Applicable to all Indian shipyards. - Valid for shipbuilding contracts signed between April 1, 2016, and March 31, 2026. - Only vessels delivered within three years (or extended period for specialized vessels) from the date of contract are eligible. 2. **Application Process** - In-principle approval for financial assistance is required before construction begins. - Application for release of financial assistance is made after vessel delivery. - Applications are submitted through a web portal created by the competent authority. 3. **Financial Assistance Computation** - Quantum of financial assistance is calculated as the product of the applicable rate and the lowest of contract price or fair price in Indian Rupees. - Actual payment received for a vessel replaces the contract price in the computation if it's lower. 4. **Release of Financial Assistance** - Financial assistance is released subject to compliance with policy conditions and availability of budget. - Maximum financial assistance for standard vessels (not specialized) is Rupees Forty Crores. 5. **General Conditions** - Major portion of the hull must be constructed and assembled in India. - Shipyard must not have availed any other monetary subsidy, grant, or incentive for the vessel. - Construction must commence after signing valid contracts covered under these guidelines. 6. **Grievance Redressal and Review** - Grievances related to the competent authority's acts can be referred to the Institutional Mechanism notified by the Ministry of Shipping. - The Ministry will review these guidelines every two years and may amend or modify them at any point. **Important Note** - None mentioned in the document. **Valid External Links** - [DGS Circular](https://dgshipping.gov.in/sites/default/files/DGS%20Circular%20No.%2001%20of%202016_0.pdf) (PDF)