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The development and modernisation plans of Cochin Shipyard Ltd (CSL) have received a boost, with the Shipping Ministry approving a ₹1,200-crore investment to set up a dry dock to build LNG carrier ships.
In addition, other shipyards in the country will be making two more LNG ships and these will be the first of its kind to be made in India. Each of these ships will cost ₹1,500 crore, Shipping Minister Nithin Gadkari said on Monday, adding the initiative is part of the ‘Make in India’ plan announced by Prime Minister Narendra Modi in his Independence Day speech. CSL will also undertake building of dredgers for Paradip Port in Odisha in collaboration with foreign technology suppliers. The cost of the dredger is likely to be around ₹500 crore.
To promote the shipping industry in the country, the Ministry is coming out with a comprehensive shipbuilding scheme, which will encourage Indian shipyards to secure foreign shipbuilding orders as well as meeting the requirement of Indian ship owners, said Gadkari.
CSL will also be building cargo and passenger vessels as well as dredgers for the inland water transport sector.
Terming the development “very positive”, K Subramanian, Chairman and Managing Director, CSL, told Business Line that the company is looking at equity markets, debt funds and internal accruals to raise funds for the investment. The new dry dock will be much larger that the existing one. “We hope that the Government would also facilitate us low-cost funds for the purpose.”
The yard is in the process of reaching a tie-up with French engineering firm GTT for the construction of the LNG vessel and a team from the company will be here this week for talks.
CSL, which saw a net profit of ₹194 crore in the last fiscal on a turnover of ₹1,600 crore, is now looking at ramping up its order book position. “The order book position for the next two-three years is alright, but we need to look beyond that”, Subramanian added.
The yard, which has constructed over 40 high quality vessels for overseas owners, has already taken over the existing ship repair facility of the Cochin Port Trust and is in the process of developing it into an international ship repair facility .
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