For the benefit of shipbuilding and repair sector in India, formation of a cluster concept has been suggested. The suggestion has been made by the Parliamentary Standing Committee on Transport.
Shipbuilding sector world-wide is developed in a cluster concept and most of the original equipment manufacturers (OEM) and raw material suppliers are ideally located in and around a shipyard, which offers the yard logistical advantage and competitive strength, the committee.
The Committee, in its 200th report submitted to Rajya Sabha, also questioned the prevailing tax provisions in the ship repair sector, which negatively impact the competitiveness of the public sector Cochin Shipyard Limited (CSL).