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Shipbuilding subsidy, positive for Bharati & ABG Shipyard

02 Apr 2009

ABG Shipyard can claim Rs 1,700 crore as shipbuilding subsidy from the Government, followed by Pipavav Shipyard (Rs 1,050 crore) and Bharati Shipyard (Rs 1,000 crore) over the next four-five years. Larsen and Toubro can claim Rs 375 crore, Tebma Shipyards Rs 270 crore and the Government-owned Cochin Shipyard can claim Rs 255 crore, according to sources in the know.


The Government, in the last week of February, approved a move to disburse about Rs 5,100 crore as shipbuilding subsidy to domestic shipyards for orders secured till August 15, 2007. The subsidy will be disbursed when the shipyard concerned delivers the ships to its customers. So, in case a buyer cancels his order due to any reason, the shipyard will not receive any subsidy for that order.


ABG Shipyard has deliveries lined up till 2013, for which it can claim Rs 1,700 crore subsidy. ABG currently has an order book of Rs 11,400 crore and says that till date it has not seen any move to delay or cancel orders from its buyers.


Bharati Shipyard, meanwhile, has already delivered vessels for which the Government has to disburse subsidies of about Rs 300 crore. Further most of the vessels for which it can claim Rs 1,000-crore subsidy, will be delivered by 2011 and some by 2012. crackcrack
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