Shipbuilding and Boat manufacturing industry in India has high expectations on the forthcoming Union Budget 2019, GST reduction to shipbuilding subsidy are the major areas to be considered predominantly. For the past years of this government, major attributes in favour of the shipping industry were displayed and for the continuous growth and empowerment to the same needs more attention.
Sustainable transportation on water, We NavAlt Solar & Electric Boats do hold the vision of transforming inland water transportation to greener. There have been hurdles always to accomplish the vision of this importance and to a limit, we have succeeded, To establish a culture of green water transportation and to invite more investors to this industry, we need to be given some exceptions and subsidies which can be summoned as under”.
- Import duty exemption for marine grade batteries – Major cost of the solar boat is marine grade lithium batteries which are being imported. Until the technology is developed in India, Govt should make a policy to provide an exemption of import duty of marine grade lithium batteries.
- Solar/electric boats to be added in FAME – Currently, electric vehicles on road are added in FAME policy. Solar boats, unlike the electric vehicles, derive more than 75% of its energy from the sun and only rest is taken from Grid, which makes it cleaner. So we request Govt to add solar boats to FAME.
- Reduce the Input GST – Input tax of the components and services for making the boat is about 15% to 18%. Govt should take prior initiatives to reduce these rates, which will be a big support for the boat building industry
- Financing options – We urge the Finance Ministry to introduce schemes and support programs for easy financing for the purchase of solar boats just like vehicles on road. Banks should treat solar boat financing on priority or even consider this at par with automotive financing.
- Special Fund / Shipbuilding subsidy – Now Govt is providing shipbuilding subsidy for vessels more than 24 meters length. We request to modify the subsidy policy as to support the solar boats. There should be an additional subsidy to the vessel that is having solar-powered propulsion. Even solar boats less than 24meters and more than 10 meters should be given the subsidy.