Govt. to invest Rs 7,000 crore in ship-building modernisation

New Delhi, May 19 (UNI) The government will infuse a whopping Rs 7195 crore in the shipbuilding sector to modernise its infrastructure and research design base while setting up of two international-size shipyards on the east coast and the West Coast is also under its active consideration.

''A committee has been set up to finalise the locations and prepare the documents for calling expression of interest for the setting up of the two shipyards,'' Shipping, Road Transport and Highways Minister T R Baalu disclosed today.

Addressing a meeting of the Consultative Committee attached to his Ministry here, Mr Baalu said the investment plan and two state-of-the-art shipyards -- one each on the East Coast and the West Coast -- would position India as a major shipbuilding nation.

The minister, while apprising Committee Members of the performance of the shipping sector, said the order book position of the shipyards had improved tremendously from about Rs 1500 crore in 2002 to Rs 10,000 crore at present.

''This position is expected to improve further,'' he said, adding that the government was taking all possible steps to maintain this growth.

''The government is also considering providing revival packages to the Hindustan Shipyard Limited and the Hooghly Dock and Port Engineers Limited to the tune of Rs 814.50 crore and Rs 391.14 crore respectively,'' Mr Baalu said, hoping this would not only clear their past liabilities but also infuse funds for modernisation and working capital.

Highlighting the employment potential of the shipbuilding sector, the minister said it was necessary to provide a strong impetus to the shipbuilding activities through policy initiatives.

''That is why the Ministry of Shipping, Road Transport and Highways is providing a ship-building subsidy of 30 per cent to all the Indian shipyards, including the private sector,'' he pointed out.

The scheme is valid up to August 2007 but the Government has proposed to get it extended on a long-term basis.

Participating in the meeting, the MPs stressed the need for launching strict safety measures in the shipping sector.

UNI/SKS SRS RS1344