L&T identifies 3 locations for new shipyard

Larsen & Toubro, the country's biggest engineering firm, has shortlisted three locations for setting up a new shipyard at an estimated investment of up to Rs 2,000 crore.

"We are in the stage of finalising the location for our next shipyard. We have shortlisted three locations - one is near Kakinada (Andhra Pradesh) and two others are near Chennai (Tamil Nadu) and Mundra (Gujarat)," L&T senior executive vice-president (Heavy Engineering), M V Kotwal, told PTI.

He said the company expected to finalise the location in the next few months and would take "another two and half years for the new shipyard to be operational".

Asked about the investments on the shipyard, Kotwal said L&T would invest between Rs 1,500 crore to Rs 2,000 crore.

"The new shipyard will be focussing on three segments. One will be for defence ship production, another for niche commercial applications like CNG and LNG carriers while the third activity would be for ship repairing," he added.

With the government allowing private sector participation in defence contracts, the company has been eying orders from the Indian Navy. L&T already has a shipyard at Hazira in Gujarat, which is mainly into building of specialised vessels like survey ships, offshore and multi-support vessels.

The company had won its first order for ship building last year from Dutch company Zadeko Ship Management CV for $98 million.