Financial Assistance Policy for shipyards

The government has introduced a Rs 4,000-crore Financial Assistance Policy (FAP) for Indian shipyards for a period of 10 years, for contracts secured between April 1, 2016 and March 31, 2026. Under this scheme, financial assistance equal to 20 per cent of the lower of “Contract Price” or the “Fair Price” will be extended to Indian shipyards for each vessel built by them. This rate of 20 per cent will be reduced by 3 per cent every three years. Provided that at the time of release of financial assistance, if the actual payment received for a vessel is lower than the contractual price or fair price, then financial assistance will be given on the actual payment received.