Indian government to offer financial help to shipyards
India’s Ministry for Shipping has started negotiations with various financial institutions in an effort to set up a fund of up to US$2.48bn to extend low-cost loans to shipbuilders.
The Industrial Finance Corporation of India (IFCI) and the state-owned IDBI bank will be the main contributors.
The government hopes to boost the country’s shipbuilding activity by launching a policy which includes the granting of special economic zone status to shipyards.
Shipbuilding activity in India has to deal with intense competition from Korean and Chinese shipyards, which are more attractive to owners because of lower interest rates.