In order to ease the financial stress affecting the shipyards the Institutional Mechanism on Infrastructure chaired by Secretary, Department of Economic Affairs has recommended inclusion of shipyards undertaking shipbuilding and ship-repair under the Harmonized list of Infrastructure Sectors.
Pursuant to this addition, such shipyards will be able to avail flexible structuring of long term project loans, long term funding from infrastructure funds at lower rates of interest and longer tenure equivalent to the economic life of their assets, relaxed ECB norms, issuance of infrastructure bonds for meeting working capital requirements as well as benefits under Income Tax Act, 1961.
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