The Chinese government is expected to provide a subsidy for the development of domestic ship recycling industry.

According to China Securities Journal, ‘Detailed Provision of Governmental Subsidy for Ship Demolition’ legislated by a related department is anticipated to be released within this year.

Compared to “Renewal Measures for Demolition of Old Vessel and Single-hull Tanker” unveiled in 2010, the detailed provision eases some parts of companies’ application conditions for demolition subsidy.

Chinese industry is forecasting that the government will fix the subsidy amount for all the industries as about $4.56bn as an extension of 2010 measures.

An Industrial watcher said that the first draft of ‘Detailed Provision of Governmental Subsidy for Ship Demolition’ is already completed and it is being signed by each department of the Chinese government, including the Ministry of Finance, the Ministry of Transport, the Ministry of Industry and Information Technology, National Development and Reform Commission and etc.

Each department has already formed a consensus regarding the related provisions and the new detailed regulation is seen to keep the previous principle that the subsidy application condition will be only met when an enterprise builds or purchases a new vessel with conducting ship recycling at the same time.