KOCHI: Cochin Shipyard Ltd (CSL) is setting up a Rs 100-crore ship building facility at Kolkata to cater to inland shipping services expected to gain traction with the national waterway development projects. Speaking to reporters on Friday in connection with the forthcoming IPO of the company, CSL chairman and managing director Madhu S. Nair said development of National Waterway-1 connecting Hooghly River to Ganges in Allahabad has been in an advanced stage opening a new source of potential business for the shipyard.
“The project is expected to generate good demand for cargo and passenger vessels,” Mr Nair said. He added that Kolkota project will offer similar opportunities for the company in the Eastern Region including Bangladesh. The CSL is planning a capital investment to the tune of Rs 3,100 crore over the next four to five years in various projects, Mr Nair said. The major projects included a new dry dock yard and a ship repairing facility in Kochi. The dry dock yard with 310 metre length will have the capacity to undertake the building and repair of large ships including LNG tankers, except those in the category of the very large vessels. The facility will be established in 30-acre area within the CSL premises.
The project estimated to cost Rs 1,800 crore is expected to be commissioned within 30 months after launching the work, which would commence by the end of this year or early next year. The International Ship Repairing Facility (ISRF) at a 42-acre land on long lease from Cochin Port Trust is another major project to be implemented by CSL. The project estimated to cost Rs 970 cr is also expected to be commissioned within 30 months after the commencement of work.
Stating that the company is having projects worth nearly Rs 1,200 crore in the pipeline, apart from the aircraft career venture of the Indian Navy, Mr Nair said the company has robust business prospects. The CSL managed to overcome recessionary trend in global shipping industry over the last 7-8 years in the wake of global economic slowdown and is poised to make major gains in coming days. The CSL IPO will open on August 1 will be closed on August 3.
After the divestment the shares of the Union Government will come down to 75 per cent from the present levels of 100 per cent.
