$2.5-billion Rajapur Shipyards to go on stream in two years

Country's largest bulk vessels construction facility got $1.24 bn order in hand

Australia-based diversified business group Vivus Global will set up a $2.5-billion (about Rs 15,000 crore) shipyard facility at Rajapur in Ratnagiri district, Maharashtra. The facility, Rajapur Shipyards Private Limited, being built by the group's infrastructure arm, is expected to start its operations in the next 24-28 months. It has already got orders worth $1.24 billion from its parent company.

George Abraham, managing director, Vivus Global Australia Private Limited, said the facility would be the single largest foreign direct investment (FDI) project in the sector and all necessary approvals from the government have been taken. The company announced signing of eight agreements worth Rs 2,000 crore to undertake various works at the project site.

The Maharashtra Coastal Zone Monitoring Agency gave its nod in January 2009. Later, the Expert Appraisal Committee for Infrastructure Development, and the Coastal Regulation Zone and Miscellaneous Projects had given clearance for construction in April, 2009.

The shipyard will have two yards and can build very large bulk cargo carriers (VLBCCs), very large crude carriers (VLCCs), very large gas carriers (VLGCs): Oil rigs and offshore drilling rigs of capacity up to 500,000 Deadweight tonnage (DWT) can be built and repaired on land, making the launch facility independent of the production through puts, said CMDE Balasubramaniam, managing director, Rajapur Shipyards. He said the project would come up on 1,200 acres, of which 860 acres had already been acquired.

According to Balasubramaniam, currently large ships are built mainly in Korea by Hyundai, Samsung and Daewoo. In the shipbuilding industry, this was the only segment (large carriers) that did not report de-growth, he said. Hyundai supplies around 90 vessels every year.

Rajapur Shipyards has to supply 16 VLCCs with a DWT of 3,16,000 each. The delivery of the first batch of ships has to be made by 2016.

The company said the interiors of ships will be done by Godrej, while electrical works, including supply of transformers and switchboards will be made by General Electric, Banglaore. Pipearts will undertake plumbing works.

The company, which is setting up a captive port inside Rajapur to import materials for the construction of the plant, said it was also open to offer the port facility to others.