Shipping corp to invest $800-mn in shipyards

Mumbai: Shipping Corporation of India is likely to invest $600 million to $800 million in shipyards, said Mr Umesh Grover, Director, Technical and offshore services, on the sidelines of India Maritime Summit-2008 organised by CII on Wednesday.

Earlier, as per the National Maritime Development Programme, the Government had indicated construction of two shipyards on the east and west coasts. While Ennore Port is responsible for the east coast, Mumbai Port has been entrusted with the responsibility of the west coast shipyard.

Partner soon

Looking at a joint venture set-up, SCI is likely to finalise its partner in the next few months. “We are talking to some partners for our shipbuilding foray, and expect to finalise our plans in the next three to four months,” said Mr Grover.

The company may fund the foray via a mix of debt and equity. “We may also go for an IPO depending on what our partners agree,” he said.

According to Mr Grover, while nine parties have bid for the east coast, around four have bid for the west coast shipyard. The shipyards would cater to mainly very large crude carriers, he said.