Gujarat shipyard plan has many takers

The state of Gujarat on the west coast of India is set to become one of the world?s largest shipbuilding complexes. While players like L&T, Adani, Pipavav Shipyard and ABG Shipyard are already present in the state, over a dozen new companies are queuing up to set up ship building and repair yards.

While ABG is looking at setting up ?more than one? yard, apart from the existing ones, the new entrants include Mercator Mech Marine, Core Marine-Tech, Gujarat Shipbuilding, Sandesara Group and DolPhin Offshore Enterprises. Startek Marine (Chennai) wants to develop shipbuilding and repair yards along Gujarat?s coastline.

Nearly 15 companies, including ABG, have shown interest in the Gujarat Maritime Board?s (GMB) proposal to construct over half-a-dozen shipbuilding and repair yards along the state?s coastline. ABG has submitted EoIs for all four projects. “We are looking at building more than one shipbuilding yard in Gujarat,” says Rishi Agrawal of ABG group.

As orderbooks at overseas shipyards are full until 2009, a large number of Indian players have started setting up yards and also expand existing facilities. Gujarat, which has the longest coastline in India, is aggressively marketing its case.

The GMB had commissioned a study for developing shipbuilding yards in Gujarat. According to the study, the five sites would require an investment of around Rs 200 crore to Rs 400 crore ($45 to $90 million), depending upon the size of vessels to be built. The sites are the coastal belt between Gogha and Mithivirdi in the Gulf of Khambhat, coastal belt between Salaya and Sikka in the Gulf of Kutchh, coastal belt between Jodia and Navlakhi in the Gulf of Kutchh, on the estuary of Narmada river in the Gulf of Khambhat and on the coastal belt in South Gujarat region near Billimora.

In addition, some companies are looking at sites such as Dahej and Bhavnagar. According to the GMB study, Indian shipyards are also buzzing with activity due to countries like South Korea are having huge backlogs of orders to the tune of 1000 vessels.