CSL strong contender for building next aircraft carrier:Nair

Friday, Jul 28, 2017,18:32 IST By anju A A A

Kochi | The Cochin Shipyard is constructing a new bigger dry-dock facility which would make the firm a strong contender for constructing the country’s next indigenous aircraft carrier, a top CSL official said today.

Chairman of the public sector shipyard in India, Madhu S Nair, said the CSL has got vast knowledge in building aircraft carriers.

India’s first indigenous aircraft carrier, INS Vikrant, is in its final stage of construction at the CSL.

“We feel that with the kind of aircraft carrier knowledge we have, and the present carrier we are building, we feel that the CSL will be strong contender for the next aircraft carrier. This is a general feeling. We want to pitch in strongly for that,” Nair told a press conference here.

The new drydock–a 310 m long one– to be set up at the north of the CSL campus would make the company a strong contender for constructing a bigger aircraft carrier for the country, he said.

The yard already has two docks of 255 metres and 270 metres.

Responding to a question over the Defence ministry’s alleged reluctance to give fresh orders for the CSL, Nair said the ministry has given its due consideration to the company and pointed out that the present aircraft carrier (INS Vikrant) is the mainstay of the order today.

“Nobody can ignore Cochin Shipyard as we move forward.
Nobody will be able to ignore Cochin Shipyard as we move forward,” he said.

He said the company plans to create an international ship repair facility within the yard, for which it has already leased a 42 acre plot from the Cochin Port Trust.

The CSL also plans to build a Rs 100 crore facility on the shore of Hooghly river in Kolkata for constructing vessels for inland water transport system.

He said the company will be investing Rs 3,100 crore over the next five years for capacity expansion in both ship building as well as on the repairs side.

The company is coming out with its IPO in the first week of August and fixed a price band of Rs 424-432 per equity share of Rs 10 face value.

The government is divesting 11.32 million shares through an offer for sale while the company is issuing 22.65 million fresh shares, that should ensure the government stake comes down to 75 per cent post-issue.

The PSU clocked revenue of Rs 2,059 crore in FY17, with 74 per cent contribution from the ship building side and the rest from repairs. The profit after tax was Rs 312 crore.