Indian Shipbuilding Industry : News & Updates

Cochin Shipyard bags Adani Ports tugboat order, deal value estimated at ₹450 crore

Adani Ports and SEZ ordered eight new tugboats from the Indian shipbuilder Cochin Shipyard on December 27. Adani Group eyes to expand its tugboat fleet to 152 after the estimated delivery date upper limit of August 2028, as per the BSE filing.

Published: 28 Dec 2024, 04:56 PM IST
By Anubhav Mukherjee
1735526769037.png
Adani Ports ordered eight tugboats from Cochin Shipyard on Friday, December 27. Pic: 70 Ton Bollard Pull ASD (Azimuthing Stern Drive) Tugs built by CSL for JNPT, Mumbai. (PTI)

Adani Ports and SEZ, through its subsidiary, Ocean Sparkle Limited, has ordered eight tugboats from the Indian shipbuilding giant Cochin Shipyard Ltd (CSL), according to an exchange filing on December 27.

The estimated value of the tugboat order is ₹450 crore, according to the BSE filing. This makes the order fall under the “Significant” category of ₹200 to ₹500 crore.

The order will comprise eight 70 T Bollard Pull ASD (Azimuthing Stern Drive) Tugs delivered by Udupi Cochin Shipyard Limited, a wholly owned subsidiary of the CSL.

According to the company filing, the tug deliveries will start in December 2026 and are expected to be completed by August 2028. The company has ordered these tugs as a part of its expansion goals in the Indian maritime industry.

“This collaboration to procure from Cochin Shipyard Ltd signifies our commitment to enhancing maritime infrastructure in India and demonstrates our confidence in our nation's PSUs. By leveraging local manufacturing capabilities, which are world-class, we aim to contribute to the ‘Make in India’ initiative while ensuring that our operations meet international standards of safety and efficiency,” said Ashwani Gupta, whole-time director and chief executive officer of Adani Ports and SEZ in the statement.

The shares of Adani Ports and Special Economic Zones closed 1.06 per cent lower at ₹1,230.75 after Friday's market session, compared to ₹1,243.90 at the previous market close.

On the other hand, Cochin Shipyard shares closed 5 per cent higher at ₹1,532.10, compared to ₹1,459.15 at the previous market close. The company filed the order book update on the Adani deal on Friday, towards the end of the market operating hours.

The fresh order of eight tugs comes as three more of the same classification tugs are under construction at the Udupi CSL for the Adani Group. According to the filing data, the new order will bring Adani's tugboat fleet to 152 after delivery.

https://www.livemint.com/companies/...estimated-at-rs-450-crore-11735382563877.html
 
  • Like
Reactions: marich01 and Ankit Kumar
news on the above work

Afcons Infra secures 1,084.54-cr contract in Visakhapatnam​

Project to be completed in 36 months
India’s Afcons Infrastructure has obtained a Letter of Intent (LoI) from the Ministry of Defense via the Defence Research and Development Organisation (DRDO).

A multi-faceted project is underway to improve maritime facilities in Visakhapatnam, involving the augmentation of the Material Test Centre (MTC), the creation of a Ship Assembly Facility (SAF), and the provision of workshop equipment for the ship lift facility (AMCSWF). The project follows a design and build (D&B) concept, incorporating a wide range of work including civil, mechanical, and electrical tasks, heating, ventilation, and air conditioning (HVAC) systems, extra-low voltage (ELV) systems, furniture and interiors. The initiative represents a comprehensive upgrade of the facilities, enhancing their functionality and efficiency.

The initiative, with a total project value of Rs 1,084.54 crore, is expected to be completed within a span of 36 months.

A comprehensive strategy has been launched to boost the operational capabilities of India’s ship lift facility, a crucial element of the country’s defence infrastructure. This initiative seeks to significantly improve the efficiency and effectiveness of the facility, ultimately strengthening national security.
Click to expand...

 
  • Like
Reactions: Asterion Moloc, Gautam and Ashwin
  • Like
Reactions: Nationalist Papaa, Gautam and Ashwin

Budget Sets Up Maritime Development Fund (MDF) of ₹25,000 crores, propels India's Maritime Sector​


The Union Budget has placed strong impetus to realise the huge potential of India’s shipping sector. The forward-looking document aims at further enabling India’s shipbuilding industry with spurring & innovative initiatives to drive investment, generate income for the economy, train and employ human capital and create value for the future of the country. The Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal welcomed the budget and termed it progressive policy statement towards realising the vision of Prime Minister Shri Narendra Modi of a Viksit Bharat by 2047.

On the occasion, Shri Sonowal said, “I welcome the Union Budget presented in Parliament today. This budget serves as a catalyst for economic growth, aligning with Prime Minister Narendra Modi ji’s vision of a ‘Viksit Bharat, Atmanirbhar Bharat.’ I congratulate Finance Minister Nirmala Sitharaman ji for presenting a forward-looking budget that embodies the principles of good governance, progressive reforms, and innovative policymaking. This budget not only strengthens business and trade sentiment but also acts as a springboard for economic expansion, capacity building, and solution-driven holistic development of the society and growth of the economy. By unlocking value and enriching national assets, it lays the foundation for sustained progress and people-centric development. The budget aims to generate wealth, drive welfare initiatives, and foster public participation in nation-building. It safeguards the interests of future generations while elevating the quality of life for the people of Bharat.”

The Union Budget proposes to set up Maritime Development Fund (MDF) to support India’s Maritime sector by providing financial assistance, via equity or debt securities. The initial corpus of the fund is pegged at ₹25,000 crores - where the Government contribution will be 49%. The remaining balance will be contributed by Major port authorities, other government entities, Central PSEs, Financial Institutions as well as private sector. This fund will directly benefit in financing for ship acquisition. It aims at boosting Indian flagged ships share in the global cargo volume upto 20% by 2047. Further, indigenous fleet will reduce dependability of foreign ships, improve Balance of Payment and secure Strategic interests of the country. By 2030, MDF is aiming at generating upto ₹1.5 lakh crore investment in the shipping sector.

Speaking on the initiatives for spurring the India’s Maritime sector, the shipping minister, Shri Sarbananda Sonowal said, “It is reassuring to see that the budgetary initiatives for India’s marine sector are focused on unlocking its vast potential and enhancing existing assets through upgrades, modernisation, and automation. A key highlight is our ministry’s development of new shipbuilding clusters of 1.0 to 1.2 Million Gross Tonnage (GT) each. This strategic push is crucial in realising India’s vision of becoming a $30 trillion economy by 2047. By leveraging the Public-Private Partnership (PPP) model, the scheme is designed to attract private investment, promote modernisation, and advance green technologies. These efforts will enhance India’s global competitiveness, drive sustainable growth, and solidify its position as a leading Global Maritime Hub.”

The Union Budget provided a shot-in-the-arm to India’s domestic shipbuilding industry after it announced new mega shipbuilding clusters in the country. This scheme will provide direct capital support in the form of creating the breakwater along with capital dredging. It also proposes a 10-year rent holiday for the land, if not provided at a nominal rate. Investment is also designed to support creation of trunk infra like roads, utilities, sewage treatment among others. The proposed allocation of ₹6,100 crore aims to support India's existing shipyards in upgrading, modernising, and automating their operations, enhancing efficiency, utilisation, and overall output.

The Union Budget has also extended the Shipbuilding Financial Assistance Policy (SBFAP) 2.0, aimed at providing direct financial subsidies to Indian shipyards. This initiative seeks to help in securing orders by offsetting operational cost disadvantages, thereby strengthening the domestic shipbuilding industry. To be financed via Budgetary support, the total outlay of the scheme is ₹18,090 crores.

Another innovative scheme announced in the budget is the Shipbreaking Credit note. This scheme incentivises Ship Scrapping by issuing a Credit Note of 40% of the scrap value which can be reimbursed to buy new Made in India ships.

Adding further, Shri Sonowal said, “India's maritime sector has witnessed significant progress since 2014, and with the latest announcements by the Finance Minister, we are confident that the shipbuilding industry will serve as a catalyst for economic growth. While the Shipbuilding Financial Assistance Policy (SBFAP) is designed to provide financial incentives to Indian shipyards, the Ship-breaking Credit Note further strengthens the domestic industry by encouraging investment and expansion. These measures are expected to drive capital inflows, create employment opportunities, and enhance sectoral competitiveness. Additionally, a renewed focus on training and human capital development will ensure a skilled workforce, equipping professionals with expertise in modern shipbuilding technologies, automation, and sustainable maritime practices. This holistic approach will not only support industry growth but also position India as a global leader in shipbuilding and maritime innovation.”

Highlighting the need to develop trained professionals in the sector, the budget allocated specific funds for training and development of human resources in order to leverage India’s position as a global leader in maritime human capital. The budget provided for Shipbuilding Capability Development Centres (SCDC) is aimed propping up platform for development of innovative ship design and engineering solutions as well as testing & evaluation of Shipping projects. An outlay of ₹1200 crores have been earmarked for this. Additional provision of ₹1040 crores have been announced for providing capital and operational assistance to the existing and upcoming shipbuilding design and training centres from the private sector. A budgetary allocation of ₹610 crores is proposed for a support scheme for Research & Development (R&D) and innovation in ship technology. This initiative will foster development of new and improved shipbuilding technologies. New incentives are projected to generate 11 lakhs of direct or indirect employment.

In a welcome move for the shipping industry, the Union Budget also proposes include Large Ships of certain size in to the Infrastructure Harmonised Master List (HML). This will make them eligible for benefits such as easier access to long-term financing and tax incentives. This will also attract private investment and enhance fleet modernisation.

In a boost to the inland waterways in the country, the Tonnage Tax Scheme is now extended to Inland vessels. This will encourage more cargo movement as the vessels will avail tax benefit from its capacity, instead of profit. This will further incentivises shipping companies to invest in inland waterways vessels as it becomes financially more viable. The extension of PM GATI SHAKTI Portal to private players will further bring efficiency in cargo movement via multi modal infra planning at a more economical rate.
 
  • Like
Reactions: Ironhide and marich01

Japan’s largest shipbuilder Imabari eyes opportunities in Andhra Pradesh​


MUMBAI: Imabari Shipbuilding Co.,Ltd, Japan’s largest shipbuilder, is eyeing opportunities in Andhra Pradesh with a high-level delegation led by its President Yukito Higaki meeting Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday and discussed potential for investments, officials said

Founded in 1901 and privately owned by the Higaki family, the group builds ships from 10 yards in Japan. The shipbuilder, based in Imabari, Ehime Prefecture, Japan, has constructed over 2,940 ships since its inception. Andhra Pradesh has adopted a cluster-based approach to developing shipbuilding and ship-repairing industries by allocating land in a port area or identified cluster area at a tailor-made subsidized rate for the anchor units which require more than 500 acres and an overall investment of over Rs4,000 crores. Land may be provided on a long-term lease (30-60 years) at a nominal rate. “Our policy does not focus on shipbuilding alone; it focuses more on shipyard development by offering incentives for the creation of yard infrastructure,” Praveen Adhithya C V, Chief Executive Officer, Andhra Pradesh Maritime Board (APMB), told ET Infra on 24 January.
 
  • Like
Reactions: Nationalist Papaa and Asterion Moloc
Kandla aims to build 50 ships a year

Gujarat port gears up to develop ₹27,000-crore greenfield shipbuilding cluster in Kutch
LOOKING UP: Pipavav Shipyard, once India’s biggest shipbuilder, is back in action under a new owner after years of downturn

February 09, 2025
1739282796510.png

To attract private shipbuilders from across the globe, Deendayal Port Authority (DPA) in Gujarat is looking to lease 2,000 acres in Kutch district to develop a shipbuilding cluster. The target is to annually build 50 very large crude carriers (VLCC) or similar class of sea-going vessels with 3.2 lakh dead weight tonnage (DWT) capacity each.

The ₹27,000-crore greenfield project is expected to come up in Veera village, near Tuna Tekra. SK Singh, Chairman of DPA, which operates India’s oldest major port at Kandla, told businessline, “We have already floated an expression of interest (EoI) for auctioning 2,000 acres at Veera. We will give land on lease to an industry partner who has the capability in designing and constructing shipyards anywhere in the world.”

While a private partner will build the shipyard, DPA will make available land with a 1.2-km waterfront on a 30-year lease. It will also provide connectivity and the basic infrastructure needed to operate the facility. “We are trying to test the market... offering this land parcel and waterfront in an advantageous location in Kandla. We are in search of a private player who has the appetite for setting up this kind of facility and can arrange for the funds. We are even ready to enter into a joint venture with the private partner and take equity. We are open to all kinds of models,” Singh explained.

Idling capacity

Once completed, the greenfield project will become the 11th shipyard in Gujarat, which already has shipbuilding capacity of over 5.4 lakh DWT, most of which is idling. Usually the shipbuilding capacity of a yard is defined in terms of the number of vessels built and their maximum carrying capacity. In the past decade, six of the biggest shipyards in Gujarat downed shutters, including two belonging to ABG Shipyard — at Magdalla and Dahej, respectively; one belonging to Pipavav Shipyard at Pipavav; and two State-owned facilities — Alcock Ashdown at Bhavnagar and Chanch in Amreli district.

A decade ago, Pipavav Shipyard (formerly known as Reliance Naval and Engineering Ltd), with 4 lakh DWT capacity, was the biggest shipbuilder in the country. Post slowdown and closure, the unit was recently taken over by Swan Energy, and it resumed operations by refitting a fast patrol vessel of the Indian Coast Guard in December 2024. ABG Shipyard, the second largest private sector facility (1.2 lakh DWT), remains dysfunctional. Among the public sector companies, Alcock Ashdown (15,000 DWT) — the third largest after Cochin Shipyard and Hindustan Shipyard Ltd — continues to idle.

Global interest

Asked why Kandla seeks to build a greenfield project when several shipyards are dormant in the State, the DPA chairman said, “In every market survey we have conducted, there is some demand for shipbuilding. We expect private entities to come up with proposals. The shipbuilding infrastructure in Japan and South Korea is saturated, and they may explore countries like India to set up joint venture projects.” With 0.05 per cent share, India ranks 20th in the $146-billion global commercial shipbuilding market, which is led by China, South Korea and Japan, according to KPMG.

Among the 35-odd functional shipyards in India, Cochin Shipyard leads with 1.1 lakh DWT capacity, followed by Hindustan Shipyard (80,000 DWT), and Shoft Shipyard (10,000 DWT).

At the end of financial year 2022-23, these 35-odd entities cumulatively had an order book of 433 ships with gross 2.49 lakh DWT. Among public sector companies, Cochin Shipyard delivered the highest tonnage — 14 ships with 2,880 DWT. In the private sector, Mandovi Drydocks led with 14 ships and 13,400 DWT, followed by Sea Blue Shipyard (17 ships with 5,400 DWT), and San Marine (10 ships with 3,660 DWT).

New projects

Despite the dormancy, newer projects continue to be announced. DPA plans to build a ship-repair hub at Vadinar in Devbhumi Dwarka district, Gujarat. The ₹1,700-crore project is being executed in a joint venture with Cochin Shipyard. During the 10th edition of the Vibrant Gujarat summit in January 2024, five proposals to build new shipyards in Gujarat were received from big entities like ArcelorMittal Nippon Steel and Mandovi Drydocks, as also little-known ones like Unicorn Docks and Port Engineers. The agreements with the Gujarat government are for future shipbuilding yards at locations like Hazira, Kutch, Bhavnagar and Amreli.

Kandla aims to build 50 ships a year
 
South Korean Shipbuilding Giant HD Hyundai Plans to Build a Shipyard in India

South Korea’s HD Hyundai Heavy Industries (HHI), a global leader in shipbuilding, is exploring potential sites in India for a new shipyard. The company has conducted site visits in Tamil Nadu and is in discussions with multiple states and industry players, aligning with India's goal to become a major player in global shipbuilding.

Edited by: Samannay Biswas
Updated Feb 27, 2025, 15:25 IST
1740765499491.png
This move follows a visit by an Indian delegation led by Ports and Shipping Ministry Secretary T.K. Ramachandran in December 2023 to major South Korean shipyards, including HD Hyundai, to discuss collaboration opportunities.

South Korea’s HD Hyundai Heavy Industries (HHI), a shipbuilding giant with nearly 10 per cent of the global market share, has initiated plans to set up a shipyard in India, marking a significant step in strengthening India’s maritime infrastructure. A delegation from HHI visited Tamil Nadu’s Thoothukudi and Cuddalore earlier this month, also engaging with L&T executives regarding potential collaboration at L&T’s Kattupalli shipyard.

Multiple States Compete for Investment

While Tamil Nadu has been a key focus, Andhra Pradesh and Maharashtra are also in contention, aggressively vying to host the shipyard. A source familiar with the developments stated, “The competition between states is very intense now. HD Hyundai is keen on expanding into India to cater to local demand.”

This move follows a visit by an Indian delegation led by Ports and Shipping Ministry Secretary T.K. Ramachandran in December 2023 to major South Korean shipyards, including HD Hyundai, to discuss collaboration opportunities.

Strategic Partnership and Technology Sharing

HHI is exploring partnerships with Indian shipyards to capitalise on the growing demand for vessels and increase its market share in India. A shipping industry veteran highlighted the benefits of HHI’s potential entry, stating, “They will share advanced shipbuilding technologies and open access to key contracts with global equipment makers, enhancing India’s shipbuilding ecosystem.”

India’s Shipbuilding Aspirations and Policy Push

Currently, India accounts for less than 1 per cent of global shipbuilding but aims to be among the top 10 by 2030 and top 5 by 2047. The Indian government has proposed a new shipping enterprise with plans to expand its fleet by 1,000 vessels in the next decade, targeting a one-third reduction in international freight costs by 2047.

An industry expert noted that rising environmental regulations and global trade expansion have spurred increased demand for shipbuilding. “Existing yards are full, and capacity expansion is a priority. HHI previously attempted to set up operations in the Philippines but faced challenges. With India now prioritising local shipbuilding, this is an ideal opportunity for HHI to establish a base outside Korea,” the expert added.

HD Hyundai’s Legacy and Global Impact

Founded in 1947 by Chung Ju-yung, HD Hyundai’s shipbuilding operations began in the 1970s, culminating in one of the world’s largest shipyards along Mipo Bay in Ulsan, Korea. The facility spans four kilometres, houses ten large drydocks and nine Goliath cranes, and has delivered over 2,300 ships to 335 clients across 51 countries.

HHI’s workforce includes 15,000 employees, and recent financial reports highlight a quadrupling of operating profit to 705.2 billion won, reflecting strong growth.

Potential Impact on Indian Shipbuilding

If HHI establishes a shipyard in India, it could transform the domestic shipbuilding sector, enhancing technology sharing, shipowner confidence, and investment in advanced manufacturing capabilities. The company’s decision in the coming months will be pivotal in shaping India’s maritime industry and global shipbuilding ambitions.

South Korean Shipbuilding Giant HD Hyundai Plans To Build A Shipyard In India
 
  • Like
Reactions: Zarion and Ashwin
Special Service and Features

MILESTONE ACHIEVED: COCHIN SHIPYARD CUTS STEEL FOR NEW SOV FOR NORTH STAR SHIPPING LTD. UK​

Posted On: 26 FEB 2025 5:42PM by PIB Thiruvananthapuram
1740845979041.png

Cochin, February 25, 2025 – Cochin Shipyard Limited (CSL), India's leading shipbuilding and ship repair organization, achieved a significant milestone today with the steel-cutting ceremony for a state-of-the-art hybrid Service Operation Vessel (SOV) for M/s. North Star Shipping (Aberdeen) Limited, UK. The ceremony was officiated by Mr. James Bradford, Chief Technology Officer at North Star Shipping, who initiated the cutting of the first steel in the presence of Mr. Sreejith K. Narayanan (Director – Operations), Mr. Harikrishnan S. (Executive Director – Shipbuilding), along with other senior officials from CSL and representatives from the classification society DNV.

1740846005122.png

Aberdeen-based M/s. North Star Shipping Ltd. is a pioneer in the offshore wind industry committed to developing sustainable energy solutions in response to the global movement towards a more environmentally friendly future. The 68 m hybrid-electric SOV is designed by VARD AS, Norway. The VARD 4 07 SOV is first of the two SOVs being constructed by CSL for North Star. The DP2 class vessel shall be powered by 3 Nos. diesel main generating sets from Yanmar and high-capacity Li ion batteries in combination. The vessel is being fitted with Voith electric-cycloidal propulsors and the Walk-to-Work system from SMST. Once commissioned the vessel is expected to revolutionize service, maintenance, and operating tasks because it has been designed especially to satisfy the demanding requirements of the offshore wind sector. This cutting-edge walk-to-work vessel shall accommodate total 54 men including specialists & crew, in charge of wind turbine maintenance and operate as a warehouse and logistics centre.

1740846084624.png

CSL demonstrates its unwavering commitment to global collaboration through this project, further establishing India as building, cutting-edge, next-generation ships on the global shipbuilding map.

1740846110104.png

CSL's steadfast dedication to excellence, coupled with the international collaboration embodied in this project, reinforces its reputation as a global player in shipbuilding. The business is still at the forefront of influencing how sustainable maritime solutions will develop in the future.

1740846046849.png

MILESTONE ACHIEVED: COCHIN SHIPYARD CUTS STEEL FOR NEW SOV FOR NORTH STAR SHIPPING LTD., UK,.
 
  • Like
Reactions: YoungWolf and Ashwin
You must log in or register to reply here.
Top Bottom