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Cochin Shipyard signs pact with Andaman & Nicobar administration

ANI 

Cochin Shipyard Ltd (CSL) has signed an agreement with the Andaman and Nicobar administration to start its operations at Marine Dockyard in Port Blair, a facility that is currently being operated directly by the administration.

CSL will assist the administration to set up a ship repair ecosystem at the islands and associate in augmentation and modernisation of the facility. It will also focus efforts on skill development in consultation with technical institutions.

The agreement is for a period of 30 years during which CSL is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair ecosystem to ensure faster turnaround and minimise downtime of the vessels.

CSL will be entitled to a management fee of Rs 15 crore per year. A profit (after tax) share of 7.5 per cent will be payable by the company to the A & N administration, according to an official statement.

CSL will assist the administration in the preparation of detailed project report for augmentation and modernisation of the facility for which the company will charge 3 per cent of the project cost.

It has also offered to provide procurement services on a cost plus mark-up basis in case the administration so desires.

Since 2017, CSL has an existing MoU for repair of large sea-going vessels of A & N administration at its facility in Kochi which is being successfully executed.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 02 2019. 11:37 IST
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