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CSL ties up with Andaman and Nicobar Islands to set up ship

Press Trust of India  |  Thiruvananthapuram 

Cochin Shipyard Ltd (CSL) has entered into an agreement with the Andaman & Nicobar administration to commence its operations at Marine Dockyard in Port Blair, a facility that is currently being operated directly by the union territory.

According to the agreement, CSL will assist the administration to set up a ship repair ecosystem at the islands, besides associating in augmentation and modernisation of the facility, a CSL press release said.

It will also focus efforts towards skill development in the Islands in consultation with the administration and technical institutions located in the Islands, it said.

While the CSL would be entitled to a management fee of Rs 15 crores per annum, a profit share of 7.5 per cent would be paid by the yard to the administration for profit generated by CSL through providing ship repair services at the Marine Dockyard facility.

The shipyard will also assist the administration in the preparation of DPR for augmentation and modernisation of the facility.

The agreement, which is for a period of 30 years, was signed at Port Blair on November 28 by Sudhir Mahajan, Secretary (Shipping), Andaman & Nicobar Administration and Madhu S Nair, CMD, Cochin Shipyard Ltd (CSL).

The shipyard is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair eco system in the island to ensure faster turnaround and minimise downtime of the vessels, which are the lifeline for the Islands.

CSL already has an existing MoU (since 2017) with the island administration for repair of its large sea going vessels.

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

First Published: Wed, December 04 2019. 14:05 IST