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Board of Cochin Shipyard to discuss disinvestment plan

Board of Cochin Shipyard to discuss disinvestment plan

The board of Cochin Shipyard would discuss the proposed disinvestment of government in the company when it meets in June.

In a first disinvestment in the sector, the government plans to offload 10 per cent stake in the company. This is part of the Rs 54,000 crore divestment target set by the government for 2013-14. The target is almost double the 2012-13 target of Rs 30,000 crore.

Cochin Shipyards currently has 28 ships on order consisting of six offshore support vessels for domestic and international owners, 20 fast patrol vessels for the Indian coast guard and the prestigious aircraft carrier for the Indian Navy. In 2012-13, the yard delivered three ships to Shipping Corp of India.

Considering an expansion project of the company, the government could not go ahead with the planned disinvestment in the firm in 2011.

Cochin Shipyard recently started its ship repair unit near the Kochi port and is planning to expand operations there. In mid 2012, the company signed a contract with the port to set up a ship repair unit at 42 acre owned by the port trust, at an estimated cost of Rs 750 crore.

In order to finance its short-term expansion, Cochin Shipyard may mop up fresh equity of around Rs 450-500 crore later.

The government-owned shipyard reported a turnover of Rs 1,405 crore and a profit after tax of Rs 172 crore for the year ended March 2012.

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