Cochin Shipyard acquires 100% stake in two dry docks of West Bengal

Cochin Shipyard Limited (CSL) has taken 100 per cent stake in an SPV which it formed along with Hooghly Dock and Port Engineers Limited for modernisation and renovation of the two dry docks on western bank of the Hooghly river, an official said.

The special purpose vehicle, Hooghly Cochin Shipyard Ltd (HCSL), was set up to bring new investors to revive the two ailing dry docks in Nazirgunj and Salkia, both in West Bengal's Howrah district. The docks were under Hooghly Dock and Port Engineers. CSL held 74 per cent stake in the SPV while HDPE has 26 per cent share.

"We have acquired 26 per cent stake in the SPV from HDPE. Now, we hold 100 per cent stake in Hooghly Cochin Shipyard," CSL chairman and managing director Madhu S Nair said.

With this acquisition of shares, HCSL has become a wholly-owned subsidiary of CSL with a paid-up share capital of Rs 22 crore, he said.

The city-based shipmaker will be closed down and all the employees of it have been offered a "golden handshake" scheme, another official said. CSL has acquired 57, 20,000 equity shares of Hooghly Cochin Shipyard Limited (HCSL) at a total consideration of Rs 5.06 crore, Nair said.

He said a modern shipyard is under construction at Nazirgunj at a cost of Rs 160 crore and the first phase of the project will be ready by October-November, 2020. The renovated dock will build vessels and barges meant for inland waterways.