Indian Firms Eye Shipbuilding

Wednesday, September 26, 2007
Indian firms are increasingly getting into ship building and repairing as shipbuilding orders are expected to rise significantly to meet the boom in seaborne trade and increased offshore oil exploration. The local industry is expected to expand to $20b by 2020 from close to $5b now, a report by maritime consultants i-maritime Consultancy Pvt Ltd said, which is about 1 percent by value of total global shipbuilding orders. Besides subsidies given by the Indian government to local shipbuilders, which is a big incentive, a major part of the world shipping fleet is very old and due for replacement, Chief Financial Officer Dhananjay Datar of ABG Shipyard said. Engineering firm Larsen & Toubro already has one ship building yard in Gujarat state and plans to invest about $378.7m for shipbuilding and a repair yard. Gujarat-based Adani group is setting up a shipbuilding and repair yard at a cost of about $252.5m. Earlier this month, a media report said Reliance Industries plans to spend $2b on shipbuilding and dredging. While shipbuilding steel used to be imported, Indian steel mills have started manufacturing steel plates used in shipbuilding. Essar Steel is already manufacturing shipbuilding steel and plans to increase it with the commissioning of a 1.5-million-tonne plate plant in Gujarat next year. The government provided a 30-percent subsidy on value of ships built by Indian yards, which would sail under a foreign flag. This concession was for a 5-year period to August 2007. The industry hopes this would be extended to help compete with their overseas competitors. This subsidy is also given to certain ships built for the local market. ABG Shipyard and its competitor Bharati Shipyard, which builds sophisticated offshore platform supply vessels, have started building rigs. Asia has the world's largest rig builders -- Keppel Corp and SembCorp Marine. [Source: Reuters]
Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Support for Sulphur Regulation Enforcement Gathers Momentum

Trident Alliance, the shipping industry initiative for robust enforcement of maritime sulphur regulations, broadens its platform as some of Germany’s and Denmark’s

High Seas Becoming Less Secure

Despite the significant reduction in piracy attacks over the last few years it is now widely accepted by the maritime community that the safety of the High Seas

EU Regulation on CO2 Reporting a Setback for ICS Efforts

The global trade association for shipowners – the International Chamber of Shipping (ICS) – is disappointed and concerned that the European Union is about to

Shipbuilding

Kleven Wins New Yacht Contract

Norwegian ship builder Kleven has secured a new contract for a high specification, 116-metre long Expedition Support Vessel. The order is placed by Mr Graeme Hart,

World’s First LNG-Ready Ultra Large Container Ship Named

The race is on in global maritime circles to be the “world’s first” in every aspect of environmental friendliness, particularly in regards to the incorporation of LNG as fuel onboard commercial ships.

Wärtsilä Integrated Solutions for Maersk's AHTS Vessels

A new series of six Anchor Handling Tug Supply vessels to be built at the Kleven Verft AS in Norway for the Danish based Maersk Supply Service A/S - part of the A.

 
 
Maritime Standards Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1223 sec (8 req/sec)