New Delhi, Sept. 16 -- The Union finance ministry has earmarked a budgetary support of Rs.5,000 crore towards providing loans at low interest rates for shipping projects, two persons said.

The ministry is considering providing a 3% interest subsidy under the proposed Rs.25,000 crore Maritime Development Fund, they said, declining to be identified.

This will help companies planning to build ships in India or acquire vessels that will bear the Indian flag get debt at a competitive rate, one of them said.

The plan for the interest rate subvention comes in the backdrop of the ministry of ports, shipping and waterways expecting investments of up to Rs.75,000 crore in three greenfield ship-building clusters.

The subsidy is also expected to ...