Mercator promoter forays into shipbuilding

Mumbai: The H K Mittal family, which is the promoter of Mercator Lines, a sea transportation services provider, has entered the shipbuilding business.

The Mittals, in association with Maharashtra-based Mech Marine Engineers, is building a yard each in Maharashtra and Gujarat at a total investment of Rs 1,500 crore.

“Two shipbuilding yards, one each in Maharashtra and Gujarat, would be built at an investment of Rs 1,500 crore,” a source close to the development told PTI today.

The Mittal family owns about 60 per cent in the shipbuilding company, with the remaining 40 per cent held by Mech Marine Engineers.

Construction work of a yard at Palghar, Maharashtra has begun. The venture has acquired 70 acres and is looking for 130 acres more.

“We have signed a memorandum of understanding with the existing land owners,” the source said.

By April 2008, a new bitumen tanker would roll out of the Palghar shipbuilding yard.

The shipbuilding yards would make specialised offshore vessels, jack-up rigs and chemical tankers.

In Gujarat, the company has zeroed in on Vansi Borsi to set up a yard. About 145 acres would be required for setting up the shipping yard.

“Acquisition of land is in process in Gujarat. In three-four months, construction work would begin,” the source said.