Titagarh Wagons makes binding offer to buy Kolkata yard of bankrupt Bharati Defence

P Manoj Mumbai | Updated on October 11, 2018 Published on October 11, 2018

Mumbai-listed Titagarh Wagons Ltd has made a binding offer to buy the Kolkata yard of bankrupt shipbuilder Bharati Defence and Infrastructure Ltd, the National Company Law Tribunal (NCLT), which is hearing the insolvency case, was told on Wednesday.

The Counsel for the Resolution Professional (RP) overseeing the corporate insolvency resolution process (CIRP) of Bharati Defence and Infrastructure mentioned this during the hearing, when the lawyer for Titagarh Wagons submitted that a claim made by Titagarh to recover dues from Bharati Defence should be adjudicated upon before the resolution plan approved by the committee of creditors, is considered by the Tribunal.

“He is a party who is making a claim for the Kolkata yard, for which he has made a binding offer to purchase,” the Counsel for the Resolution Professional (RP) told the Mumbai bench of NCLT, while saying “it is or our contention that Titagarh owes money to Bharati Defence”.

The Kolkata yard, spread over 7 acres, has a dry dock and two building berths, that can manufacture fast patrol crafts, forest product carriers and boats.

Railway wagon and coach maker, Titagarh, ventured into shipbuilding in 2017 with orders for constructing two 1,000-tonne fuel barges for the Indian Navy and two Coastal Research Vessels for the National Institute of Ocean Technology under the Union Ministry of Earth Sciences, at its new shipyard at B.T. Road near Kolkata.

In May, Titagarh launched the first fuel barge specially designed to carry fuel mid-sea to Indian Navy’s flagship aircraft carrier, INS Vikramaditya, and is currently undergoing sea trials before being handed over to the Navy this month.

In September, the second 1,000-tonne fuel barge was launched, which is expected to be handed over to the Indian Navy in December, for use in the Karwar base to support INS Vikramaditya.

“Titagarh plans to expand ship-building activities towards warship building in the near future,” Jagdish Prasad Chowdhary, Executive Chairman, Titagarh Wagons Ltd, said on September 28 at the launch of the second fuel barge for the Indian Navy.

Titagarh Wagons has secured orders from the West Bengal government for building 40 passenger boats and has participated in various tenders, he added.

Published on October 11, 2018
This article is closed for comments.
Please Email the Editor