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Cochin Shipyard, which is looking to take over the assets of defunct shipyard Hooghly Dock and Port Engineers (HDPEL), will make an initial investment of ₹22 crore in a joint venture company.
The joint venture firm would be formed between CSL and HDPEL, according to the Ministry of Shipping approvals received on March 29, CSL said in its DRHP filed with SEBI.
“However, the agreements in relation to this joint venture are yet to be executed,” it added.
Under a revival plan, CSL was looking to take over the assets of HDPEL and had earlier placed a bid.
The move would help CSL foray into the inland water space.
“We believe that this will present several opportunities, including building high-speed ferry crafts, dredgers, ropax vessels and large-capacity passenger ships. This will create demand for shipbuilding and ship repair services, which we believe we are well equipped to deliver,” Madhu S Nair, Chairman & Managing Director, CSL, said.
State-owned HDPEL had recently floated a tender for the upgradation, operation, maintenance and management of two of its shipyards at Salkia and Nazirgunge located at Howrah, West Bengal.
The Union Government had accorded in-principle approval for formation of the joint venture of HDPEL with a player selected through a bidding process as part of its rehabilitation-cum-restructuring exercise.
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