Govt plans to set up a new shipyard

The Indian government plans to set up a new shipyard on the East Coast through the public-private partnership (PPP) model. The strategic partner from the private sector will be selected through a competitive bidding process, a senior official said.
According to Exim News Service, when Hindustan Shipyard at Vizag is transferred to the Navy, the merchant shipbuilding capacity in the public sector will come down significantly.
From the strategic view point, it is necessary to have a large shipyard on the East Coast in which the government has a significant stake, the official explained.
The joint venture (JV) shipyard would require an investment of about Rs 4,000 crore, although the minute details are yet to be formulated in this regard, he said. The government is also looking for a site to set up the facility.
The country now has seven public sector commercial shipyards, besides the naval ones in Mumbai and Vizag. HSL, Cochin Shipyard Ltd, Alcock Ashdown, Garden Reach, Goa Shipyard, Mazagon Dock and Hooghly Docks are the public sector shipyards.
There are over 30 private units that either build ships or repair them, like Bharati, L&T, Pipavav, Sesa Goa, Alang Marina, ABG, Adani, etc.
The country’s fleet strength is now 938, and the gross tonnage 9.38 million.
Since its inception, HSL has built around 150 ships and repaired over 1,800, besides undertaking naval repairs. The shipyard also has work orders worth Rs 2,000 crore to be completed by March 2011.

(Source: Transport Weekly)