Shipping Corporation of India (SCI) may soon forge a mega shipyard JV with leading shipbuilding company ABG Shipyard. Sources close to the development said that South Korean shipping major STX, which was also initially interested in the project, had lately not been showing much interest, thus paving the way for SCI-ABG venture.
When contacted, both ABG and SCI officials declined to comment. “We are not talking to anyone at this point of time for the proposed venture,” SCI director UC Grover (technical and offshore services) said.
State-owned SCI has shown interest in building one of the two mega shipyards — one on the east and the other on the west coast — proposed by the government as part of the national maritime development programme (NMDP). The proposed shipyard is expected to cost around Rs 3,000 crore each. In a recent meeting between shipping ministry and STX senior officials in South Korea, the latter didn’t show any encouraging sign to join hands with SCI, a government source said.
Larsen and Toubro (L&T), Essar, Shapoorji Pallonji and Bharti Shipyard are some of the shipping majors that have submitted their expression of interest (EoI) for building mega shipyards of global standard.
The domestic shipbuilding industry is currently pegged at $4 billion and is expected to touch $20 billion by 2020. The combined order book of Indian shipbuilders is in excess of $3,700 million. According to estimates, the industry order book has grown at a CAGR of 60% in the past five years. The order book is set to grow in the range of 25% to 30% over the next decade.
When contacted, both ABG and SCI officials declined to comment. “We are not talking to anyone at this point of time for the proposed venture,” SCI director UC Grover (technical and offshore services) said.
State-owned SCI has shown interest in building one of the two mega shipyards — one on the east and the other on the west coast — proposed by the government as part of the national maritime development programme (NMDP). The proposed shipyard is expected to cost around Rs 3,000 crore each. In a recent meeting between shipping ministry and STX senior officials in South Korea, the latter didn’t show any encouraging sign to join hands with SCI, a government source said.
Larsen and Toubro (L&T), Essar, Shapoorji Pallonji and Bharti Shipyard are some of the shipping majors that have submitted their expression of interest (EoI) for building mega shipyards of global standard.
The domestic shipbuilding industry is currently pegged at $4 billion and is expected to touch $20 billion by 2020. The combined order book of Indian shipbuilders is in excess of $3,700 million. According to estimates, the industry order book has grown at a CAGR of 60% in the past five years. The order book is set to grow in the range of 25% to 30% over the next decade.