Indian shipyards primed for massive investment
The Indian shipbuilding industry is due to receive a massive influx of private sector investment over the next five years as it seeks to take advantage of overflowing order books in the world’s traditional shipbuilding nations.
While shipbuilding investment by the government totaled only $10.9 million nationwide from 1997 to 2002, investment rose to $214 million from 2002 to 2007, according to Indian Infrastructure magazine. And the private sector has plans to spend $4.7 billion on more than a dozen shipyards over the next five to seven years, the report said.
Among the biggest projects are a $764 million project in Hazira and a $509 million yard in Vansi Borsi, both in the western state of Gujarat. In fact most of the activity, both private and public, is due to take place in Gujarat, with some nine shipyards due to be built or expanded in the next decade. Others are in Maharashtra (home to Mumbai), the southern states of Tamil Nadu and Karnataka, and the eastern state of Orissa.
The ships likely to be built in Indian yards are mid-size bulk cargo ships, small container vessels and liquid bulk carriers.
However, the shipbuilding industry is facing a challenge to compete for global ship orders, particularly since a five-year government subsidy plan ended in 2007. Shipbuilders are lobbying the Indian government to keep the subsidy to remain competitive, the story said.
Indian shipyards primed for massive investment
