Subsidy plan to revive shipbuilding on anvil: Minister

New Delhi, Oct 7 (UNI) The government has decided to revive shipbuilding industry to enable it compete globally.

Indicating this here today, Shipping Minister T R Baalu said a detailed proposal on modifying subsidy scheme for reviving shipbuilding industry in the country will be circulated to the Union Cabinet next week.

The government is working out modalities to offset disadvantages which the shipbuilding industry is currently facing, he said at a conference here.

The idea, he added, is aimed at making shipbuilding and ship repair industry grow to world standards and become self-sufficient.

Traffic handled by Indian ports is expected to grow from current 716 million tonnes to over 1,000 million tonnes by 2011-12.

Mr Baalu said Indian merchant fleet, which carries about 12 per cent of the country's trade, has a huge potential for growth.

Projected turnover in this sector is Rs 76,200 crore with India's share in the world traffic going up to 7.5 per cent in 2016-17.

He said the government has already decided to set up two international size shipyards under the National Maritime Development Programme.

An Indian Maritime University to promote higher learning in marine and shipbuilding sectors is also proposed to be set up, he added.

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