Shares in ABG Shipyard jumped 3 per cent, after the Union Cabinet approved measures to help the shipbuilding industry.
In a bid to promote the shipbuilding industry under the 'Make in India' initiative, the Cabinet approved a proposal for financial assistance of 20 per cent for ships built in the country.
"The Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for introducing measures to encourage shipbuilding and ship repair industry in India under the ambitious 'Make in India' programme, an official statement said.
It includes a policy for grant of financial assistance to shipyards, after delivery of ship, to counter cost disadvantages at 20 per cent of the contract price or the fair price, whichever is lower; such assistance is to be reduced at 3 per cent every three years and will be given for all types of ships," the statement said.
This policy will be in force for ten years, it said, adding the implementation of this policy would require a budgetary support of Rs. 4,000 crore during this period.