The Hindu : Andhra Pradesh / Visakhapatnam News : Hindustan Shipyard hums with activity

Online edition of India's National Newspaper
Thursday, Sep 09, 2004

Andhra Pradesh

Andhra Pradesh - Visakhapatnam

Hindustan Shipyard hums with activity

By Santosh Patnaik

VISAKHAPATNAM, SEPT. 8. Happy days seem to be back again for the Centre-owned Hindustan Shipyard Ltd (HSL).

The yard, which was hit by clouds of uncertainty as a fallout of globalisation plus an almost an empty order book, is today humming with activity.

It has 12 shipbuilding orders worth Rs.450 crores and ship repairs amounting to Rs.150 crores.

Negotiations are on to secure contract for one more oceanographic research vessel and two bulk carriers.

The process for finalising a deal with the Indian Navy for bagging the contract for the refit and modernisation of 877 EKM submarine, Sindu Kirti, is in advance stage.

``We are on the road to recovery. Everyone in the yard, with high level of motivation, is confident of achieving a turnaround and earning a marginal profit during the current financial year,'' the HSL Chairman and Managing Director, Ajit Tewari, told The Hindu on Wednesday.

The on-hand orders, which are at various stages, include four 100 passenger capacity ships for Andaman and Nicobar Islands Administration, one 700 passenger vessel for Lakshadweep, two 30,000 dwt bulkers for Goodearth Maritime Ltd, one buoy tender oceanographic research vessel and one dredger.

Ship repairs

With Indian buyers mostly preferring foreign ships following globalisation, the HSL had to focus on ship repairs for its survival for nearly a decade. This year, the HSL is hoping to achieve an all-time high ship repair revenue of Rs.140 crores to Rs.150 crores.

One of the remarkable achievements was the contract for repairing the rig JUR from Oil and Natural Gas Corporation, which will fetch HSL Rs.92 crores. Refit work on INS Vagli, another prestigious order from the Navy, is nearing completion and its floating may be done any time.

Rear Admiral Tewari was happy with the in-principle decision of the State Government to write off sales tax dues worth Rs.45 crores. ''We are happy that the Chief Minister, Y.S. Rajasekhara Reddy, responded positively to our plea for waiver,'' he said.

Restructuring

Asked to comment on the capital restructuring plan, he said that the Government was examining the proposals sent by the HSL management. To cut down the expenditure, he hinted at a plan to prune the staff size. At present, the yard has a staff strength of 3,600. ''May be, once the Centre sanctions the required funds, we can cut down our wage bill by Rs.1 crore or so a month,'' he said.

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