India clears air on chip, ship schemes

New Delhi: The US, Canada and the UK have posed questions, at the World Trade Organization (WTO), about India's Shipbuilding Financial Assistance Policy, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, and the North East Industrial and Investment Promotion Policy (NEIIPP).

While the US has sought details on the types of financial assistance provided under the semiconductor programme and criteria for each downstream good to qualify for the incentive, Canada has asked if the support provided under the shipyards policy is limited to certain sizes or types of ships.

At a meeting of the WTO Committee on Subsidies and Countervailing Measures, the UK enquired about the inclusion of dock and port infrastructure in India's ships scheme.


On the types of financial assistance provided under the semiconductor scheme, India told the US: "Financial assistance, in the form of an incentive, of not more than 25% on capital expenditure will be given".

The US also asked the structure of the grants and if the grants apply to the production of fishing vessels while the UK sought clarification on any additional requirements on shipyards to be eligible for grants under this scheme.

India said there are no additional requirements and shipyards as per the definition in the policy are eligible for grants.

"The support under the NEIIPP is available to eligible industrial units, new as well as existing units on their substantial expansion, located anywhere in the underdeveloped and hilly north eastern region of India," New Delhi said in its reply to Canada.

However, industries considered hazardous to public health and environment are excluded from the scheme.