India’s Cochin Shipyard Gets 18 Acres For Rs 5,000 Crore Shipbuilding Facility

India’s Kerala government has approved the lease of 18.16 acres of land near Kochi to state-run Cochin Shipyard Ltd for a ship-block building facility involving an investment of around ₹5,000 crore, Chief Minister V.D. Satheesan said on Tuesday.

The project is expected to create around 2,000 direct jobs and generate additional employment indirectly.

The land, located at Ramanthuruth on an island near Kochi city, will be leased to the Central public sector undertaking. The Kerala government will receive an annual lease amount of ₹1.45 crore, rising to around ₹1.70 crore including GST, Satheesan said.

The Cabinet decision clears a proposal that had been under consideration for some time and allows Cochin Shipyard to proceed with the planned facility.

Cochin Shipyard Plans ₹5,000 Crore Investment

Satheesan said Cochin Shipyard plans to invest around ₹5,000 crore in the project.

“Today, in the Cabinet meeting, we have taken an important decision. We have decided to lease 18.16 acres of land at Ramanthuruth, near Kochi city, to Cochin Shipyard Limited (CSL). The purpose is to construct ship blocks,” he told reporters.

The chief minister said the project would bring large-scale employment and could support further development opportunities in Kochi.

He also said the investment was expected to strengthen Kerala’s shipbuilding sector and attract further investment.

New Facility to Support Ship Construction

Sources at Cochin Shipyard said the company proposes to establish a large Block Fabrication Facility (BFF) at the site to support ship construction and speed up production.

At the proposed facility, steel blocks will be pre-outfitted, painted and finished before being transported as large sections to Cochin Shipyard’s new dry dock, the sources said.

Ships will then be assembled and constructed at the new dry dock using the fabricated blocks.

The availability of ready-to-use steel blocks is expected to help the shipyard reduce construction time and accelerate vessel deliveries, according to the sources.

The facility will therefore support the shipbuilding process by shifting part of the fabrication and preparation work away from the dry dock.

2,000 Direct Jobs Expected

The project is expected to create around 2,000 direct jobs, while also generating further employment opportunities indirectly.

The Kerala government said the investment could create opportunities for ancillary industries and support wider employment in the shipbuilding sector.

The project is also expected to contribute to Kochi’s position as a shipbuilding and maritime hub.

Kerala to Receive ₹1.45 Crore Annual Lease

Under the lease arrangement, the state government will receive ₹1.45 crore annually.

Including GST, the annual revenue from the lease will be around ₹1.70 crore, according to Satheesan.

The land lease was approved following discussions between the Kerala government and Cochin Shipyard. Satheesan said the proposal had been pending for some time and was cleared after the government discussed it with the Central PSU.

Cochin Shipyard is a Central public sector undertaking and is based in Kochi.

References: cnbctv18, economictimes