HSL to build Rs 4,000 cr shipyard in AP or Orissa

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State-owned Hindustan Shipyard (HSL) plans to build a large shipyard to accommodate very large crude carrier ships (VLCC) at an estimated project cost of Rs 3,000-4,000 crore, a top official said. The proposed shipyard, which will be built on a public-private-partnership model, is expected to receive cabinet approval by the end of this fiscal, HSL's Chairman and Managing Director, Naresh Kumar said on the sidelines of SMM India's shipping trade fair.

"We will be building one shipyard in Andhra Pradesh or Orissa. We expect the Cabinet approval for this by the end of this fiscal," Kumar said, adding that the shipyard is expected to get operational in three to four years years. Once the project receives cabinet nod, the shipyard will start the process of inviting bidders, he said.

The first phase of project would involve ship repairing while the building of VLCC vessels will start in the second phase, he said. The estimated project cost for the first phase is Rs 1,000 crore.

Presently, Hindustan shipyard has an order book of Rs 2,000 crore, which includes one from Chennai-based Godorth Martin to construct a bulk carrier of 53,000 tonne capacity, expected to be completed by 2012, he said. HSL has bagged an order from Indian Coast Guard to build five Inshore Patrol Vessels (IPVs), apart from an order from ONGC to repair oil rigs, Kumar said. Also, the shipyard has received an order from Indian Navy to rebuild and modernise a submarine, he said.

HSL clocked a turnover of Rs 500 crore in the last fiscal and expects to increase the number by another Rs 50 crore in the current fiscal, Kumar said. The shipyard, so far, has built 170 new vessels and repaired over 2,000 ships.