Cochin Shipyard Ltd (CSL) is banking on the development of the river transport system and inland water movement in India to make its investment in Hooghly Cochin Shipyard Ltd bear fruit as the public sector company embarks on the revival of the 200-year old shipbuilding facility of Bengal.

CSL has ploughed Rs 175 crore from internal accrual to completely rebuild one of the two units of erstwhile Hooghly Dock & Port Engineers Ltd at Nazirgunge after taking over the sick unit.

The unit, which was formally inaugurated by the Union port, shipping and waterways minister Sarbananda Sonowal on Tuesday, will make inland and coastal cargo vessels and inland cruise vessels among others for the private sector apart from tugs, roll-on roll off vessels.

It will also make fishing vessels and small and medium ships for the Coast Guard and Navy.

“With the government’s focus on developing national waterways for cargo and passenger movement, we expect demand for vessels to go up substantially. We are positioning HSCL to cater to this market,” Madhu S. Nair, chairman and managing director of Cochin Shipyard Ltd, said.

Nair was accompanying the minister for the inauguration of the facility on the western bank of river Hooghly spread over 17 acres of land situated under 5 kilometre south of Vidyasagar Setu. HCSL has already received contract for one cargo vessel but the CMD is hoping to pick up orders for at least 5-6 ships shortly.

The unit would require to deliver at least 8-10 ships in a year to break even. Nair said it would take 4-5 years of operation before the company gathers such momentum. The local company, wholly owned by CSL, can make ships up to 120 meter long and capable of carrying 3,500-4,000 tonne of cargo.

CSL may even assist the private customers to get bank loan for the vessels, which would typically cost between Rs 25 crore and Rs 30 crore each, Nair informed. In the future, HCSL may also tap foreign partners to build dredgers at the facility.

No decision on Salkia

While Cochin Shipyard has revived the Nazirgunge unit, the Salkia unit for former HDPEL remains closed. Located on the upper reaches of the river north of Howrah Bridge, the unit can only deal in small vessels that can sail under the Bridge.

“We have not really focused on Salkia so far. May be it can be used for vessel repair in the future,” Nair added.

However, CSL has already developed a ship repairing facility in a joint venture with Syama Prasad Mukherjee Port, Calcutta. It is investing Rs 40 crore to further develop the unit located in one of the dry docks.

The company is hoping growth of inland water movement may warrant the Salkia unit to also be in use for repair in the future.