ABG Shipyards Ltd, the largest private-sector shipbuilding firm in the country, is eyeing to be a part of the Dahej special economic zone.
Shipbuilding firm likely to save 25-30% on the construction cost
AHMEDABAD: ABG Shipyards Ltd, the largest private-sector shipbuilding firm in the country, is eyeing to be a part of the Dahej special economic zone (SEZ). ABG is coming up with its second shipyard at Dahej and is pumping in Rs 400 crore for the project.
The company is anticipating savings of 25-30% if its shipyard project becomes a part of this SEZ as the input costs are likely to reduce, sources familiar with the move told DNA MONEY.
ABG executives have met top officials of the industries department, who have reportedly responded “favorably” to the company’s proposal.
ABG has agreed to share half of the cost of constructing a corridor connecting its shipyard site to the SEZ, sources added. This involves construction of a road with a total cost of Rs 20 crore.
The SEZ is being jointly promoted by public sector oil and gas major ONGC and Gujarat Industrial Development Corporation (GIDC).
ABG has been awarded 1,000 m waterfront at Dahej. The equipment of the Canadian shipbuilding firm that it cquired last year has also arrived at the project site. The firm is awaiting coastal regulatory zone clearances. However, the preliminary work outside the 150 mt CRZ area has started.
Sources said it would be economically viable for ABG to be a part of this SEZ as most of the vessels it would manufacture are meant for exports and considering that the containing the rising input costs in this industry is becoming a major challenge for all shipbuilding companies.
It has constructed and delivered 91 specialised and sophisticated vessels and 90% of the vessels built in the last two years were exported.
ABG’s Magdalla facility constructs vessels with maximum size of 120 m and 8,000 dead weight tonnage (DWT) . The new shipyard in Dahej would have the capacity to manufacture vessels up to 300 mts in size and 30,000 DWT.
This shipyard is proposed on a 67-acre land and once operational, it would have the capacity to construct 30 vessels a year, compared to present nine at Magdalla.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}