India: Shipbuilding firms likely to claim over Rs 4,000 cr subsidy

Shipbuilding firms, including ABG Shipyard, Pipavav Shipyard, Bharti Shipyard and Larsen & Toubro, are likely to claim subsidy of over Rs 4,000 crore in the next four years from the government. According to industry sources, firms like ABG Shipyard, Pipavav Shipyards, Bharti Shipyards and Larsen & Toubro are gearing up to claim subsidy,
given by the government to encourage private sector participation in shipbuilding in the country.
"We can claim Rs 1,700 crore for contracts entered up to August 14, 2007, as ABG Shipyard has deliveries lined up till 2012-13," ABG Shipyard Chief Financial Officer Dhananjay Datar told PTI.
A subsidy of Rs 120 crore is already due as per the present delivery position, he said.
Pipavav and Bharti Shipyards have also plans to claim about Rs 1,000 crore each from the government while Larsen & Toubro and some others may claim about Rs 300 crore each, sources said. An L&T official said on conditions of anonymity the company's current status indicated that it could claim Rs 375 crore from the Government.
"Pipavav Shipyard may claim about Rs 1,000 crore subsidy from the Government for contracts entered (into) within (the) stipulated period as and when it starts delivering," a source added.