Bharati Shipyard to build new yard at Dabhol port

Mumbai, Jan. 10 Bharati Shipyard said on Thursday that it would be setting up a new shipbuilding yard at Usgaon near Dabhol port in Maharashtra, at an estimated cost of Rs 600 crore.

The proposed yard, which will have the capacity to build up to 1-lakh DWT vessels in the first phase, is scheduled to be completed in two years. The yard would be spread over an area of 250 acres, of which Bharati has already acquired 180 acres.

Internal accruals

This is the fifth yard the company would be operating. The company plans to fund the project through a mix of debt and internal accruals, he said. It would be investing Rs 200 crore through internal accruals and the rest Rs 400 crore would be loans.

The Dabhol yard would be located inside a creak away from the main sea, which will make shipbuilding possible in all weather conditions, said Mr P.C. Kapoor, Managing Director.

Mr Kapoor said the yard, when fully operational by 2010, is expected to generate Rs 2,000 crore revenues, a part of which would come from repairs of ships and refurbishment of jack-up rigs.

On other plans of Bharati, Mr Kapoor said: “Mangalore yard will start production by end of 2008 but full potential would be reached only by 2010, generating revenues between Rs 1,000 crore and Rs 1,500 crore.” The company has invested around Rs 400 crore in the same.

Mr Kapoor told reporters that West Bengal Government has given approval for construction of a yard on East Coast, and it is going to come up in Midnapur district near Haldia Port.

October last year, Bharati had announced its plans for building a yard on the East coast in a 50:50 joint venture agreement with Apeejay Shipping.

“We have Orissa and West Bengal both on our radar, but since the approval has come from the latter we would be going ahead with it. The State Government has given approval for 500 acres of land to construct the yard,” the Mr Kapoor said.

Necessary Approvals

This yard would have the capacity to build vessels up to 2.5 lakh DWT and would require an investment of Rs 1,600 crore to Rs 2,000 crore, however, the source for funding is yet to be finalised, he added.

“We are proposing Dabhol project for SEZ, we still need necessary approvals from the Maharashtra Government,” he added. Bharati Shipyard shares closed at Rs 790 on the BSE down by 2.43 per cent.

Source:RamblerNews