State-owned ship-building and ship-repair major Hindustan Shipyard Ltd (HSL) is set to add naval ships to its order book.
Plans to invest Rs1,000 cr in mordenisation
MUMBAI: State-owned ship-building and ship-repair major Hindustan Shipyard Ltd (HSL) is set to add naval ships to its order book.
The defence ministry is keen to place orders for building naval ships at HSL and a decision is expected by next month, a source said.
Currently, state-owned Mazgaon 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 few 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.
It plans to invest Rs 1,000 crore in modernisation of the facilities by acquiring more cranes, improving material handling, automation and improved infrastructure, in the next five years.
“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. The shipyard is already in talks with banks such as Indian Bank and State Bank of India for debt.
“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 (up to 80,000 tonnes capacity) a year. With the modern machinery and efficient activities, the yard expects to build 8 ships per year and also assist its ship repair division, which has an order book of Rs 200 crore at present.
s_archana23@dnaindia.net
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