Cabinet nod to Rs1,624-cr subsidy for shipping companies

Tribune News Service

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New Delhi, July 14

The Union Cabinet today approved a scheme to provide Rs 1,624 crore over five years as subsidy to Indian shipping companies in global tenders floated by ministries and CPSEs for import of government cargo, an official statement said.

A decision in this regard was taken at a meeting chaired by Prime Minister Narendra Modi, said Information & Broadcasting Minister Anurag Thakur.

According to the statement, registration shall be done online within 72 hours like the world’s best ships registries and this will make it easy and attractive to register ships in India and thereby aid in boosting the Indian tonnage.

Rebate on taxes for garment exporters

Garment exporters will continue to get a rebate on central and state taxes as the government approved extension of Rebate of State and Central Taxes and Levies scheme till March 2024

The sectors covered under this scheme (apparel/garments and made-ups) would not get benefits under the Remission of Duties and Taxes on Exported Products scheme

“In addition to this, it is intended to provide 30 days to any in-flagging vessel to replace the crew on board with Indian crew,” it added.

In order to address the cost disadvantage suffered by Indian flag ships, Finance Minister Nirmala Sitharaman in her Union Budget for 2021-22 speech had announced a scheme providing Rs 1,624 crore over five years to promote flagging of merchant ships in India by providing subsidy support to Indian shipping companies in global tenders floated by ministries and central public sector enterprises (CPSEs).

The statement said steps are also being taken to rationalise the manning requirements on the ships by aligning them with international standards.