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Cochin Shipyard to invest Rs500 cr for capacity expansion

Cochin Shipyard to invest Rs500 cr for capacity expansion
PTI
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First Published: Fri, Mar 11 2011. 06 43 PM IST
Updated: Fri, Mar 11 2011. 06 43 PM IST
Kochi: The public sector unit Cochin Shipyard Ltd (CSL) is proposing to expand its existing capacity through a shiplift system with an investment of Rs500 crore, a top official on Friday said.
The new system is likely to come up at the northern end of the CSL estate and would be 120 metre long and able to accommodate ships up to 6,000 tonnes, CSL chairman and managing director, Commodore K. Subramaniam, told reporters.
The project is likely to be taken up by next year.
The company has two drydocks. One of the docks is being used for the construction of the Indigenous Aircraft carrier of the Indian Navy and the other is used for ship building and ship repair. Once the shiplift system gets completed, it is likely to ease the congestion in the drydock.
At present, the CSL has orders for 34 ships consisting 14 offshore platform vessels for domestic and international owners and 20 fast patrol vessels for the coast guard totally valued at Rs4,000 crore.
On India’s first indigenous aircraft carrier being built at the CSL for the Navy, he said it is to be ‘floated out’ in December last year. But due to various reasons, it could not take place and will be floated out this year-end, he said.
CSL is hoping to get more orders from the Indian Navy very soon,he said.
Recession did have an impact on the shipyard as it did not receive any orders from 2008 to September 2010. After September 2010, the yard received orders for 24 ships of the 34 ships.
The effect of recession will be felt this year and the next year. “We had a very good growth in the last 5 years. That will not be there this year and the next year. But our performance would not be affected.” he said.
The shipyard’s shipbuilding income increased to Rs1,012 crore in 2009-10 from Rs222 crore in 2005-06.
CSL has been diversifying into new areas of construction and repairs over the last few years and had successfully completed two major ship conversion projects, one for a Singapore based owner and the other for National Institute for Oceanography, Goa. The former was a conversion of a fishing vessel to research vessel and the latter was a conversion of fishing vessel to a seismic survey one.
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First Published: Fri, Mar 11 2011. 06 43 PM IST