Budget 2013: Made-in-India vessels to get a headwind

After being ignored in previous budgets, there is finally something to cheer for India's shipping industry this time with P Chidambaram scrapping excise duty on ships and vessels.

"As a measure of relief to the shipbuilding industry, I propose to exempt ships and vessels from excise duty. Consequently, there will be no countervailing duty on imported ships and vessels," he said.

Anil Devli, chief executive officer, Indian National Ship-owners Association, said the scrapping of excise and CVD was a big boost to the shipbuilders. "We will see more ships being built in India now," he said.

Dhananjay Datar, group chief financial officer, ABG Shipyard Ltd, said: "The Rs 300-crore subsidy will increase the cash flow."

Chidambaram also announced setting up of two new ports in West Bengal and Andhra Pradesh, and the development of a new outer harbour in the VOC port at Thoothukkudi ( Tamil Nadu) through the PPP route at an estimated cost of Rs 7,500 crore.