Kandla plan may boost Cochin Shipyard Limited but dim Kerala’s chances
CSL had earlier studied the feasibility of expanding to Andaman but dropped after finding it unviable
Kochi: The Central government’s plan to prod the Cochin Shipyard Limited (CSL) to set up a shipyard at Tuna in Kandla port offers an opportunity of growth shipbuilder but will be a loss of opportunity for Kerala.
According to sources in CSL, the Central government is looking for a many-fold growth in the employment-generating shipbuilding industry as part of its ‘Make in India’ campaign and has zeroed in on CSL as a brand with international repute and deep domain knowledge.
“But with Kerala in no position to offer more land, and several major Central projects such as the LNG terminal in the state failing to take off, it is natural that the Centre pushing the case of Kandla port,” the sources said.
CSL had recently floated a global tender to select an agency to conduct a techno-feasibility study on setting up a ship-building unit on 310 hectares in the port-based special economic zone in Kandla.
“It is not necessary that CSL will expand to Kandla though there is pressure from the Centre,” the sources said. “CSL had earlier studied the feasibility of expanding to Andaman but dropped after finding it unviable.”
Pointing out that CSL got in-principle clearance for the dry dock and other infrastructure facilities in record time so that it could compete in the international bid for building LNG carriers, the sources said the Centre was keen on the CSL making rapid progress. “But once the dry dock and the ship-repair facility come up, there will be little land left for future expansion.”
A section of the employees, however, feels the move to expand to Gujarat would ultimately lead to the sidelining of the Kochi unit.
“Gujarat can win over Kerala on land availability and hence the future expansions, and business, are likely to go to the unit,” said a union leader in the company.
The centre had promised a second shipbuilding project in Kerala in the 12th five-year plan and the state government had identified Poovar in Thiruvananthapuram for hosting it.
That the government did not pursue the project seriously is proving costly for the state as the union shipping ministry taking keen interest in developing the industry.