Last Updated : Monday, December 2, 2019 15:25:12

COCHIN SHIPYARD to manage & operate Marine Dockyard in Andamans

COCHIN | MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT – In a regulatory update submitted to the Indian Stock Exchanges, government owned ship construction company Cochin Shipyard Ltd said of having inked agreement with Andaman & Nicobar Island Administration for operation and management of The Marine Dockyard, as well development of ship repair ecosystem for the islands.

In a press-release as submitted by the company to the Indian Bourses, titled – “CSL SIGNS AGREEMENT WITH A&N ADMINISTRATION FOR OPERATION & MANAGEMENT OF THE MARINE DOCKYARD, PORT BLAIR AND FOR DEVELOPMENT OF SHIP REPAIR ECOSYSTEM FOR THE ISLANDS,” it further read that, Cochin Shipyard Ltd (CSL) has entered into an Agreement with the Andaman and Nicobar Administration to commence its operations at Marine Dockyard, at Port Blair, a facility that is currently being operated directly by the A&N Administration.

Under the ambit of this Agreement signed on 28 Nov 2019, CSL shall assist the Administration to set up a Ship repair ecosystem at A&N islands, shall associate in Augmentation and Modernization of the facility and shall also focus efforts towards Skill Development in the Islands in consultation with the Administration and Technical Institutions located in the Islands.

CSL will be entitled to a management fee of Rs 15 crores per annum. A profit share of 7.5% of PAT shall be payable by CSL to the Administration for profit generated by CSL through providing Ship Repair Services at the Marine Dockyard facility.

CSL shall assist the Administration in the preparation of DPR for Augmentation and Modernization of the facility for which the Company would charge 3% of the project cost (as per approved DPR).

CSL has also offered to provide procurement services on a Cost plus Mark-Up basis, in case the Administration so desires.

The Agreement is for a period of 30 years, during which CSL is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair eco system in the island to ensure faster turnaround and minimize downtime of the vessels, which are the lifeline for the Islands CSL already has an existing MoU (since 2017) with A&N Administration for repair of large sea going vessels of A&N Administration at its facility in Kochi, which is being successfully executed, which has in turn led to the conclusion of this Agreement for long term association.

The Agreement was signed at Port Blair on 28 Nov 2019 by Shri Sudhir Mahajan IAS, Secretary (Shipping), A&N Administration and Shri. Madhu S Nair, CMD, CSL.

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