Centre plans to set up a shipyard to produce very large crude carriers (VLCCs) under public-private partnership with an investment of Rs 3,000-4,000 crore, in lieu of Hindustan Shipyard going to the defence ministry. It is likely to be located on the east coast of India and will be operational in three to five years.
This will be the only facility in India after Pipavav shipyard to produce huge vessels such as VLCCs. The government will hold between 26-49 per cent stakes in the project. The private developer has to acquire land to expedite the project. A consultant will be appointed to work out the detailed project report and invite bids. The project is likely to be awarded by February-March next year.
The Cabinet had approved the transfer of Hindustan Shipyard from the Ministry of Shipping to the Ministry of Defence, to meet the countryâ€™s security requirements by building vessels for the navy.