Shipyards may get land at near zero cost

Shipyards investing in new building and repair facilities in specified industrial corridors may get land for nearly free, as the Centre looks to encourage the industry in India's coastal states.

- Subhash Narayan

Land and common maritime infrastructure may be provided to such shipyards on lease for 6O years that can be extended further, the ports and shipping ministry proposed in greenfield shipbuilding cluster development scheme norms released on Monday. While a nominal lease rent would be charged, the Centre and states would not include the land cost as part of the lease to be received from the cluster participants.

Shipbuilding firms, particularly the global giants, insist on availability on land and associated infrastructure to commit greenfield investments. With land cost being absorbed by the Centre and states, investments for putting up a shipyard and associated risk could be reduced substantially.