Govt to set up Rs 4,000-cr international shipyard

The government plans to set up a shipyard to produce large-sized vessels under public-private partnership with an investment of Rs 3,000-4,000 crore, in lieu of Hindustan Shipyard going to the defence ministry. “The government will set up another shipyard, most likely on the east coast (of the country) in PPP mode to make very large crude carriers (VLCCs) and other large vessels... The total investment will be at Rs 3,000-4,000 crore,” a senior government official said.

This will be the only facility in the country after Pipavav shipyard to produce huge vessels such as VLCCs.

“The government will hold anywhere between 26-49 per cent in the project... land will be acquired (for the project) by the private developer to expedite the project,” he said.

The government will appoint a consultant to work out the detailed project report and then invite bids.

“The project is likely to be awarded by February-March next year... It will take three-five years for the shipyard to come up,” he added.

The Cabinet had last week approved the transfer of Hindustan Shipyard Ltd from the Ministry of Shipping to the Ministry of Defence, to meet the country’s security requirements by building vessels for the Indian Navy.