Gujarat lines up policy to pump up ship building

In order to give a push to the ship-building industry in Gujarat, the state government plans to introduce a ship-building policy. In recent years, Gujarat has emerged as a major destination for development of ports and port-based facilities catering to the needs of the vast hinterlands of north and central India.

Traffic on Gujarat coast is increasing at the rate of 15% per annum. Ship repairing and building will provide indirect support to ports and shipping activity, says a government source.

The proposed policy talks about a number of initiatives, including creating global competitiveness, simultaneous competition and co-operation. In order to develop innovative technologies, ship-builders should be encouraged to compete and co-operate at the same time.

The government is also planning shipping technology centres in partnership with ship-builders to focus on ship design and productivity improvement. Human resource development, encouraging joint ventures with foreign yards, forming a marine ship-building park (a cluster of shipyards) and single-window clearance are some of the initiatives the state government is considering.

The state government will work with the central government to establish a mechanism for single window clearance on environmental issues and land acquisition, among others. We will also constitute Ship-building project implementation committe’, said a government official.

As per the proposal, there will be a launching fee for newly-built vessels. No other port charges will be levied. Also, adequate length of waterfront will be allotted for suitable locations to establish the yard.

The government is also planning to offer tax concessions. The shipyards will be developed in clusters called Marine Shipbuilding Park. These parks will be accorded the status of SEZs, said a source.


The industry may also be exempted from octroi, electricity duty for a specified period.

The government is also mulling to grant permission for setting up captive power generation plant within the shipyard. The state may also provide support for hinterland linkage including rail and road network to the shipyards. Ancillary industry development will be extended similar support as shipbuilding and ship repair industry,said a source.

Source:The Economic Times