Andhra Pradesh - Visakhapatnam   

HSL takeover move irks GML

VISAKHAPATNAM: The move on takeover of Hindustan Shipyard Limited by Ministry of Defence has irked the Chennai-based Goodearth Maritime Limited which played a crucial role in making the sick unit achieve a turnaround.

“It’s a matter of serious concern. We are hurt the way the consideration is made without consulting us after we put up a lot of effort to revive the yard,” GML Managing Director S. Madan told The Hindu. He was here recently to receive the third ship.

GML, which began its ‘long-term’ association with HSL in 2004 with an order for building four 30,000 DWT and six 53,000 DWT double hull trader series bulk carriers involving an amount of $300 million, has already received three ships. The remaining bulk carriers will be delivered by 2010.

Mr. Madan told The Hindu that GML entered the scene when HSL was in crisis due to poor order book and the company slogged it out to pep up the spirit of the workforce and enhance the quality of the production.

“The delivery of m.v. Good Province and m.v. Good Princess went slightly behind schedule – which could have been avoided. They (HSL) promised us that they would execute more projects for us. Now officially communicated to us that they will not receive any order for delivery after 2010 probably because of takeover by MoD,” he said in reply to a query.

Expressing satisfaction over cooperation from staff of HSL, he said GML also benefited a lot in the form of experience and getting world-class ships during its association with HSL. The shipyard, which was established in 1941 by Scindia Steam Navigation Company, became fully owned Government of India enterprise in July 1961.

On setting up of a Greenfield shipyard by GML at Cuddalore with an investment of $800 million, Mr. Madan said the project came as a boon in disguise in view of HSL’s ban on accepting orders for delivery of ships after 2010. The futuristic shipyard coming up at Cuddalore where IDFC is investing Rs.260 crores for onshore and offshore drilling, will start delivery of ships in 2011.

He said GML, which owns eight ships would acquire seven in next two years, had a roadmap to own 100 ships in 10 years by taking up construction of 25 to 35 ships every year at Cuddalore.

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