Cochin Shipyard, one of the major shipbuilding and repair yards in the country, is partnering with Gujarat’s Deendayal Port Authority (DPA) for a project worth Rs 1,750 crore. The collaboration aims to set up a shipbuilding hub on Gujarat’s west coast, specifically in Devbhumi Dwarka district.
DPA Chairman Sushil Kumar Singh recently shared the details about the project during an interview with Business Line. DPA, which oversees the Kandla port, is set to invest Rs 700 crore in constructing an outfitting jetty and other infrastructure.
Half of this amount will be sourced through the Sagarmala project, which is a central government initiative to promote port-led development in India. It focuses on modernising ports, improving port connectivity, and developing coastal industrial zones.
On the other hand, Cochin Shipyard will allocate Rs 1,050 crore to establish two floating docks at the facility.
Cochin Shipyard’s new facility in Vadinar will focus on ship repairs, with a projected capacity to handle 32 ships per year. Under the agreement, the company will pay a fixed lease rent and royalty to DPA. The detailed project report (DPR) has already been submitted to the Union Ministry of Ports for approval.
In the financial year 2022-23, 439 ships were repaired in India. Private companies handled 180 of these, while public sector companies took care of 108. Cochin Shipyard was responsible for 105 repairs, generating revenue of Rs 549.26 crore. Goa Shipyard repaired 44 ships, and Garden Reach Shipbuilders and Engineers took on 13.
Cochin Shipyard has been in the ship repair business since 1982 and holds the top position with a capacity to manage ships up to 1,25,000 deadweight tonnage (DWT). Following it are Hindustan Shipyard with a capacity of 80,000 DWT and Goa Shipyard at 4,500 DWT.
The company currently holds orders worth Rs 22,500 crore. Additionally, its subsidiary, Udupi Shipyard, which it acquired in 2020, has orders totalling Rs 2,000 crore.
