L&T to build Rs 2,000cr shipyard near Chennai

Hopeful that the present economic downturn will not hit its ambitious Rs 2,000 crore shipyard plan near Chennai, Larsen and Toubro will start building naval ships, particularly frigates and warships.

Our shipbuilding plans are not focused on the kind of ships where the demand is low. We are not focused on shipbuilding as a total spectrum. We are not looking at bulk shipping. We are looking at niche areas of shipbuilding, L&T Board member M V Kotwal said.

We would start with a lot of naval ships such as warships and frigates. We want to build this yard with the most advanced system. At present, Navy's demand is unfulfilled, Kotwal said.

Last year, L&T signed an agreement with the Tamil Nadu government to set up a shipyard in Kattupalli, near Chennai, at a cost of Rs 2,000 crore.

Justifying the move to build naval vessels, Kotwal said, We have got a very good position with regard to naval equipment is concerned. Navy has been quite positive on indigenization in lot of things.

“If you look at the long term, Navy has definitely got a plan. There will be a large requirement much exceeding the capacity,” he said.

That is where we see a definite potential, Kotwal said.

Source: http://cgi.wn.com