India sets up world-class shipyards

Two shipyards of international standards are being planned in India and, when completed, they will have the capability to build vessels in excess of 300,000 dwt. At a cost of $656 million each, the intention to build these shipyards will be formally flagged up within the next two weeks when the expressions of interest (EoI) from potential contractors will be invited.

One yard will be located on the west coast and the other on the east coast of the country. For the yard on the western coast, the Mumbai Port Trust has been asked to manage the EoI while, for the eastern side, it is the Ennore Port. To be built in phases, the yards will be operational in three years from the time the contract is awarded. Each yard will be spread over four to five million square metres.

Officials from the shipping ministry is keen to fund up to $130 million in each shipyard and may even take a 51% stake in it if no serious player comes into the fray. “Funds will not be an issue. But we want technological backing for the shipyard from global players,” the officials said. Each of these shipyards will have a water depth of 12 metres and capability to build at least 8 ships each year in the first phase. Later on, the capacity will be raised to 24 ships along with steel fabricating capacities of 60,000 tonnes annually.