New Delhi: The government plans to set up a shipyard to produce large-sized vessels under public-private partnership with an investment of Rs3,000-4,000 crore, in lieu of the Hindustan Shipyard going to the Defence Ministry.

“The government will set up another shipyard, most likely on the east coast (of the country) under the the PPP mode to make VLCC and other large vessels ... the total investment will be at Rs3,000-4,000 crore,” a senior government official told PTI.

This will be the only facility in the country after Pipavav shipyard to produce huge vessels such as very large crude carriers (VLCCs).

“The government will hold anywhere between 26-49% in the project...land will be acquired (for the project) by the private developer to expedite the project,” he said.

The government will appoint a consultant to work out the detailed project report and then invite bids.

“The project is likely to be awarded by February-March next year ... It will take three-five years for the shipyard to come up,” he added.

The Cabinet last week approved transfer of Hindustan Shipyard Ltd from the Ministry of Shipping to the Ministry of Defence to meet the country’s security requirements of building vessels for the Indian Navy.

The minimum land requirement for the new shipyard would be 1,000-1,500 acres with a waterfront of about 2.5 km. The site would be contiguous to a major port and must have good rail and road connectivity, according to the National Maritime Development Programme (NMDP).

The government envisages building two international size shipyards under the NMDP — one each on the east and west coasts. The Shipping Ministry had nominated the Mumbai Port Trust and the Ennore Port Trust to function as the nodal agencies for setting these up.