The shipping industry is expecting that the upcoming Budget will greenlight the revised production-linked incentive (PLI) scheme for manufacturing shipping-grade containers. Specific reforms expected include increased funding for port modernisation and incentives for green shipping practices.
Centre is expected to revive production-linked incentive (PLI) scheme for manufacture of shipping containers in budget. The Ministry of Ports, Shipping, and Waterways has proposed a revised PLI scheme to boost the manufacturing of shipping-grade containers, after a previous plan for the same was shelved post cabinet discussions, government officials said.
The revised PLI scheme recommended by the Ministry of Ports, Shipping and Waterways has a reduced budget of Rs 5,000 crore and a shorter tenure of three years. The earlier proposal for Rs 11,000 crore of incentives over 9 years was shelved by the Cabinet Committee on Economic Affairs (CCEA).
What Budget may deliver
Expectations are also that the government may launch a maritime development fund with a corpus of Rs 15,000 to 20,000 crore to support shipbuilding firms with low-interest loans, reported by media. The fund will provide loans to shipbuilding firm at cheaper rates with simple conditions.