L&T Bags Offshore Contract from ONGC
L&T Hydrocarbon Engineering (LTHE), a wholly-owned subsidiary of Larsen & Toubro, has signed an offshore contract for ‘Bassein Development 3 Well Platform & Pipeline Project’ with Oil & Natural Gas Corporation (ONGC). Larsen and Toubro stated in a stock exchange announcement that the contract is valued at approximately 1,483 crores (approximately 229 Million USD). The order, won against International Competitive Bidding, encompasses ‘EPCIC’ – Engineering, Procurement, Construction, Installation and Commissioning - for the project. The EPCIC scope of the project includes three new wellhead platforms, 23- kilometer subsea pipeline, composite subsea power cable, clamp-on works on an existing platform and modification work on nine existing platforms in the western offshore basin in India.
GAIL to Offer Sops for Foreign Shipbuilders
GAIL India will offer foreign shipbuilders five years to make liquefied natural gas (LNG) carriers in India, double the time allowed to deliver ships from their home shipyards, reports Economic Times. Report says that the company is insisting foreign shipbuilders to build in India at least a third of the 11 LNG carriers. It also plans to charter carriers from one or more shipping lines. GAIL hopes this concession will attract foreign firms to locally manufacture ships proposed to be chartered by the Indian gas company. Earlier in February, GAIL had floated a tender for the purpose in February but scrapped following no response from foreign companies.
East Coast India Ports Climb in the Ring: Analysis
Adani Ports has acquired an interest in Dhamra Port, situated between the major ports of Haldia and Paradip. Adani Ports and Special Economic Zone recently announced the much-anticipated acquisition of Dhamra Port Company Limited (DPCL), a joint and equal ownership by Larsen and Toubro and Tata Steel. DPCL is a concessionaire at Dhamra Port (in the state of Odisha on the east coast of India) and has been entrusted with the responsibility of building and operating a multi-user, multi-cargo port. DPCL holds a 34-year concession which can be renewed for two additional 10-year periods. Adani Port reportedly had been awaiting environmental clearances (received early this year) for Phase 2 expansion at the port and has also been serving as management consultants to the port.
India: L&T Shipbuilding to Expand Building Capacity
According to a Sept. 26 report from the Press Trust of India and Business Standard, engineering major Larsen and Toubro’s (L&T) shipping arm L&T Shipbuilding has earmarked around Rs 1,500 crore to develop around 800 acres of land at Kadipully near Ennore in Chennai for expanding its vessel building capacity, a top company official said. The Kadipully project, to make vessels primarily for defense, would be developed in phases and the first phase will start by mid-2011, the official said. (Source: Business Standard)
L&T Defers Shipbuilding Expansion
According to a report from the Wall Street Journal, Larsen and Toubro Ltd has deferred its entry into the commercial shipbuilding business and has also decided to scale back its investment for a new shipyard at Kattupalli near Chennai. (Source: Wall Street Journal)
Shipbuilding Subsidy May be Revived
The ministry of shipping is considering reviving subsidy on shipbuilding to enable the industry to be globally competitive. Currently, ’s share of global shipbuilding orders stands a minuscule 1percent. The subsidy scheme had expired on August 14, 2007. T R Baalu, Union minister of shipping, road transport and highways, said the ministry is thinking of circulating a cabinet note on subsidy this week. The previous subsidy scheme provided a 30% incentive on the contract value of ocean-going merchant vessels more than 80 metres in length sold to Indian companies, and on all ships sold to foreign firms. A report by audit and consultancy KPMG on shipbuilding subsidies across the globe last year showed that Indian yards suffer a minimum cost disadvantage of 32-37% on the price of a typical ship.
L&T Wins Contract
Larsen and Toubro Ltd (L&T) has won a contract valued at about $240m to build four specialized ships for Dutch company RollDock BV. Indian companies are currently building about 245 ships worth more than Rs20,000 crore. Of this, about 70% are for overseas clients, who are placing orders at Indian yards as shipbuilding facilities in maritime strongholds such as , and are fully booked till 2011. Each ship will cost about $60m to build. These will be built at L&T’s shipyard at Hazira in and would take the firm’s order book to 12 ships. The Mumbai-based company launched its shipbuilding venture in May 2006 with an order for building four ships valued at Rs440 crore from Rotterdam-based Zadeko Ship Management CV (now known as ).
L&T in Talks for Shipbuilding Contract
India’s biggest engineering and construction firm, Larsen and Toubro Ltd, is in talks with a Dutch shipowner for a new building contract valued at more than $100 million according to the Wall Street Journal. New orders: Larsen and Toubro’s employees shift a 20-tonne ship part in the company’s shipbuilding yard in Hajira. L&T is negotiating with a Dutch shipowner for a new shipbuilding order. L&T is currently building eight ships valued at about Rs1,150 crore. These comprise six for RollDock and two from BigLift Shipping BV, also of the Netherlands. L&T launched its shipbuilding venture in May 2006 with an order for building four ships valued at Rs440 crore from the Rotterdam-based shipping firm Zadeko Ship Management CV (now known as RollDock BV).
