Media reports indicate that Tamil Nadu Maritime Board revoked the approval given to Goodearth Shipbuilding
for its proposed Rs 2,000 crore shipyard and captive port project at Silambimangalam in Cuddalore district.
The board also cancelled the relevant agreements entered into with the company to develop a captive shipyard within Silambimangalam shipyard port limits in Cuddalore district.
According to sources in the company, the firm decided to drop the project for the time being considering the downturn in the global shipping sector. But it is learnt that the firm may review the scope of the project and set up the yard at a suitable time in the future.
Owing to slowdown in the global shipping sector, firms such as Adani Group, Reliance Group abandoned their investment proposals to set up shipbuilding facilities.
In December 2007, Goodearth Maritime, the parent firm of Goodearth Shipbuilding, received Rs 260 crore funding from IDFC Private Equity, IndiaÂ’s biggest infrastructure-focused private equity fund.
Thailand-based dry bulk cargo specialist Precious Shipping Public Company bought six vessels of Goodearth Maritime in the last one year for a combined value of $94.5 million.
Precious Shipping bought 6 vessels from Goodearth Maritime. Goodearth is now left with two bulk carriers with 2 more on order at Hindustan Shipyard, the state-owned shipbuilder located at Vizag in Andhra Pradesh.