Rs 3,515 cr may flow into Gujarat shipbuilding industry

Gujarat's shipbuilding industry got a fresh spell of investment on the concluding day of the two-day meet 'Ship-building opportunities in Gujarat' organised by the Gujarat Maritime Board (GMB).

MoUs were signed between the state government and a few national ship-building companies.

On Sunday, MoUs worth Rs 3,515 crore were signed by the state for developing a shipbuilding yard, RO-O services, offshore related port facility, ship stimulation among others in the state. The largest investment MoU was signed by a Haryana-based IREO Management Advisory.

The company will be investing Rs 1,600 crore for developing shipping and related maritime infrastructure facility at Shivraj Okha. Followed by Rs 750 crore investment by Essar to develop a RORO terminal and common user cargo jeti at Hazira. Essar will develop in a joint collaboration with GMB.

While others investors are Stelco Strip Ltd to develop shipbuilding and repair yard at Dahej and Bhavanagar with an investment of Rs 300 crore.

Similarly, Shri Mataji Ashapura Ports Private Ltd and Chidambaram Shipcare will be investing Rs 150 crore and Rs 50 crore respectively for development of shipbuilding and repair yard.

Walchandnagar Industries Ltd will develop port facilities for specialised structures and equipments for oil, gas, marine and other core sectors at Dahej with an investment of Rs 350 crore.

Two companies have shown interest in developing Gujarat's coastal areas for cargo and passenger transportation.

Satyagiri Shipping co Ltd will operate the Mumbai - Gujarat and intra-Gujarat passenger-cum-cargo transportation and Samudra Link Ferry Shipping & Cruise Services Pvt Ltd will develop coastal passenger ferry system in Gujarat. The companies are investing Rs 20 crore and Rs 30 crore respectively.

ABG Shipyard Ltd will invest of Rs 100.75 crore in the state for expanding shipyard facilities and to establish a maritime museum.

Education institutes had also taken an initiative to develop the shipping industry in Gujarat, as Ganpat University and ARI would establish a full mission ship maneuvering and engine room stimulator, for which it will invest Rs 2 crore.

Modest Infrastructure Pvt Ltd will invest Rs 150 crore for developing RO-RO terminals and cargo jetty as a JV with GMB. Similarly, ISGEC - a unit of Saraswati Industrial Syndicate are investing Rs 10 crore on RO-RO jetty in Dahej SEZ.

The only agreement signed was to set up a vessel traffic management system in the Gulf of Cambay by NOR Control for Rs 100 crore.

Anil Patel, Minister of Industry, said, "We are going to have 10 shipyard parks in the state by the year 2022. Each park will have 10 to 15 shipyard projects and the parks will be developed along the Gujarat state coastal region. The annual turnover of these parks will be around $30 million. This is our long term vision of developing the shipbuilding sector in the state."

A GMB official said, "The planned shipyard parks will be given industry status and many of them will have SEZ status also."

The total investment in the state's maritime sector has reached Rs 12,948 crore. The state has given in-principal approval to 15 shipbuilding yard project proposals of Rs 7,033 crore.

The State has also received three expressions of interest from companies like Goodearth Maritime, ABG Shipyard Ltd and L&T Infrastructure Development Projects worth Rs 2,300 crore.