HSL to build warships

The Indian state-owned shipbuilder and ship repairer Hindustan Shipyard Ltd (HSL) plans to invest Rs 1,000 crore in modernising its facilities in the next five years enabling it to enter the naval ship newbuilding market. The defence ministry is keen to place orders for building naval ships at HSL and a decision is expected by next month according to a local source.

Currently, state-owned Mazagon Docks Ltd, Garden Reach, Kolkata, Goa Shipyard and Cochin Shipyard build most of the naval ships. Among the private firms, ABG Shipyard has built some coast guard ships, while Bharati Shipyard has built some vessels for the Indian Navy.

India?s shipbuilding capability is saturated with shipyards booked to capacity. However, there is demand for more warships and small vessels from the Indian Navy as a large number of old vessels will be scrapped in the next five years. So much so, the defence ministry is also keen on shipbuilding cooperation with South Korea. In this context, placing a number of orders with HSL will ease the pressure somewhat. Meanwhile, HSL, one of the oldest shipyards in the country, is working towards optimising its existing capacity to increase efficiency and double turnover.

“We have applied for a package from the government to fund the project and would raise the remaining amount through debt,” said Ajit Tewari, chairman and managing director, HSL. “We would be investing Rs 400 crore in the next 2-3 years, of which Rs 200 crore would be used to acquire heavier cranes, up to 900 tonnes, on an immediate basis,” Tewari added.

HSL, with a building order book of Rs2,000 crore, has a capacity to build four ships of up to 80,000 DWT a year. With the modern machinery and improved efficiency, the yard expects to build eight ships per year and also assist its ship repair division, which has an order book of Rs 200 crore at present.