core sector communique

Parliamentary Consultative Committee on Shipping Meets to Discuss Functioning of the Cochin Shipyard Limited

India aims to attain self-sufficiency in ship-repair and emerge as a dominant ship repair centre in Asia by raising the share of Indian shipbuilding in the global shipbuilding market to 5% share by 2020. The vision document of the Ministry, “Maritime Agenda 2010-2020” aims to have a well developed shipbuilding and ship repair industry of international standard in India. This was stated by the Union Minister of Shipping, Shri G.K. Vasan while addressing the Members of the Consultative Committee attached to his Ministry in New Delhi today. Cochin Shipyard Ltd. (CSL) plans to meet a part of its expenditure for expansion through IPOs. Secretary, Shipping, Shri P.K. Sinha explained in detail the background of the disinvestment and the Government of India’s Policy vis-à-vis the enlisting of PSUs on the Stock Exchange. The CMD of Cochin Shipyard Ltd. Commodore K. Subramaniam said at the Meeting that based on the business plan and in order to sustain the growth of ship-repair and shipbuilding in future, it is essential that investment is made for capacity augmentation as follows: (i) A new dry dock at the CSL estate with a dimension of 80M x 100M capable of docking rigs, semi submersibles etc. (ii) Develop a ship-repair facility at Cochin Port Trust. (iii) Take up offshore fabrication work for M/s ONGC / other operators at a dedicated offshore location. The financial and technical feasibility report for the above projects with the revenue projections would be ready by December 2012. The approximate cost for the expansion is likely to be Rs.1500 crores (subject to confirmation at the feasibility study stage). CSL hopes to raise a part of this requirement by way of IPO at the time of the disinvestment by Government of India. The Members discussed in detail the functioning of this Mini Ratna Company, which has been consistently paying dividend over the last three years.