Engineering and construction major Larsen & Toubro (L&T) is planning to set up a mega ship-building facility in Gujarat. It is exploring possibilities of developing a facility at Kachhigarh, a coastal site located near Okha port in Saurashtra.
"We have had preliminary discussions with L&T and they are serious about constructing ships in Gujarat. It is also considering a strategic tie-up with a Korean company for this venture," a senior government official told TOI. The company plans to construct very large crude carriers (VLCCs) measuring up to 3-3.5 lakh DWT at the new shipyard. Earlier, it had also considered Mundra as one of the locations for this.
Sources said that L&T is likely to commence technical feasibility studies at the site after the monsoon.
Asked about the quantum of investment that L&T is likely to make in this project, the official said, "Though there is no official communication about this from the company, a shipbuilding project these days requires not less than Rs 900 crore or so." L&T officials declined to comment on the plans.
The company had earlier planned to expand its Hazira facility but later decided against it due to technical problems. If L&T finalises this location, it would be the third big private company after ABG Shipyard and Nikhil Gandhi's Sea King Infrastructure Ltd (SKIL) to berth at Gujarat waters. ABG is building its second facility at Dahej while SKIL is constructing a shipyard at Pipavav with an investment of over Rs 4,000 crore.
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