The Hindu Business Line : HSL in re-building mode

AT LAST, a ray of hope has appeared on the horizon for the struggling Hindusthan Shipyard Ltd. It has bagged work orders for construction of bulk carriers, and the order-book position for this financial year seems healthy.

However, it needs working capital and the yard is awaiting approval for a restructuring and revival plan.

The HSL has on hand shipbuilding orders worth Rs 1,300 crore, including a carry-over from last year worth Rs 600 crore.

Recently, the yard has received orders from the Chennai-based Goodearth Maritime Ltd for construction of six 53,000 DWT bulk carriers. The bulk carriers will be the biggest HSL has ever built. The first vessel is to be delivered in 28 months and the rest at intervals of six months after that.

On the ship repair front, HSL's performance in 2004-05 was satisfactory.

The yard earned Rs 140 crore during the year through ship repairs. It is likely to receive orders worth Rs 100 crore for ship repairs.

Another welcome feature for the yard is the waiver of sales tax of Rs 46 crore by the Andhra Pradesh government. The yard has to pay Rs 5 crore to the State government in instalments. HSL also repaired a rig for the ONGC, Sagar Pragati, and delivered it earlier this month.

The Union Shipping Minister, Mr T. R. Baalu, said at Kochi recently that the revival package for Hindustan Shipyard was getting ready and he indicated that it would get the Government approval. The workers of the public sector HSL are pinning their hopes on the United Progressive Alliance Government, as both the Congress and the Left parties had promised before the polls that the ailing PSUs at Vizag, including the HSL, would be revived.

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