Lok Sabha Question No. 548 (UNSTARRED), answered on 2022-02-04
Subject: Loss of Foreign Exchange on Drydocking of Ships
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Sushil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING  AND WATERWAYS

## LOK SABHA

## UNSTARRED OUESTION NO. 548

ANSWERED ON O4IO2I2O22

## LOSS OF FOREIGN EXCHANGE ON DRYDOCKING OF SHIPS

## 548, SHRI SUSHIL KUMAR SINGH:

Will the Minister of PORTS, SHIPPING  AND WATERWAYS  be pleased to state: qfi-i,  +dqfu{dr  ofr{sdcrlf  d*

- (a) whether the Government  proposes to gauge the magnitude of revenue generated in lndia through dry- docking activities in the shipping sector;
- (b) if so, the details thereof;
- (c) the details regarding loss of foreign exchange  caused as lndian ship-makers  are taking their vessels to different countries for drydocking, and
- (d) the steps being  taken by the Government to promote  drydocking of ships in lndia?

## ANSWER

## MINISTER OF PORTS, SHIPPING  AND WATERWAYS (SHRI SARBANANDA SONOWAL)

- (a) & (b) As per the estimates,  lndia has an annual  domestic ship repair market potential of Rs.7,000  crores (Approx.) excluding foreign flag vessel  and conversions and the same is expected to reach to Rs. 13,000 crores (Approx.) by the year 2030.
- (c)  Currently there are several ship repair facilities on the East coast and West Coast  of lndia  which provide ship repair and drydocking facilities.  However, there are times when the drydocking  facility may not be available if there is a sudden  requirement of drydocking facilities. While a majority of the lV, Coastal and RSV vessels only use drydocking  and ship repair facilities  in lndia, sometime a very small  number of such vessels may need to get dry-docking facility out of lndia since the vessels  have to complete their dry-docking  by a fixed date. Mainline vessels operate internationally  in international  waters. Such  vessel  may use dry-docking facilities outside lndia depending on where the vessel is at the time of the requirement of the dry-docking  cycle. Further, Minastry  of Ports, Shipping and Waterways has a  policy according to which all government  departments or agencies including  CPSUS  have to  provide Right of First Refusal to lndian shipyards  while drydocking  of ships meant for governmental  or own use. Foreign yards are awarded contracts only when there is no participation from lndian  yard  or when lndian yards do not qualify.

- (d)  As part  of infrastructure augmentation dry-dock  ship repairs, Cochin Shipyard Limited (CSL), a PSU under the administrative  control of this Ministry, is embarking on substantial infrastructure expansions the details of which are detailed  below:
- (i) lnternational  Ship Repair Facility (ISRF)  at Cochin Port Trust Premises:  CSL had taken over on 30 years lease the existing ship repair facility of Cochin Port Trust (CoPT) located at Willingdon  lsland,  Kochi and is in the process of developing  it into a state-of the-art lnternational  Ship Repair Facility (ISRF) by installing ship lift, & transfer system, 6 dry berths  & associated facilities at an estimated cost of RS.970 crores. The ISRF will modernise, expand and substantially augment the existing ship repair capacity of CSL. The ISRF includes 6000T shiplift for ships upto 130 x 25 m with six work stations and allied  facilities.  Total outfltting  berth of 1500 meters  approx.  The facility is expected to be completed by July 2023.
- (ii)  CSL-Mumbai Ship Repair Unit (CMSRU): CSL commenced operations of its Mumbai Ship Repair Unit in October 2018 through  an agreement with the Mumbai Port Trust to upgrade, operate and manage  Ship Repair Facility at Hughes dry-dock  and berth nos. 5, 6, 7 and 8 of lndira Dock of Mumbai Port. Subsequent  to the execution of the agreement, CSL has commenced  the ship repair operations in Mumbai.  The facility undertakes  repairs of both Defence  and Commercial Ships.
- (iii)  Csl-Kolkata  Ship Repair Unit (CKSRU): CSL commenced  operations  of its Kolkata Ship Repair Unit in March 20'lg through an agreement with Kolkata  Port Trust for operations  and management  of ship repair facility at Netajisubhas  Dock (NSD)  for a period of 30 years.  The new venture  is being  managed  by separate  unit of CSL known as "CSL-Kolkata  Ship Repair  Unit (CKSRU).  The Honourable  Prime Minister  of lndia, Shri Narendra Modi formally inaugurated the CKSRU facility on January 12,2020. the facility undertakes repair to both Defence  and commercial  ships.
- (iv) CSL-Andaman & Nicobar  Ship Repair  Unit (CANSRU): CSL commenced  operations of its Andaman Unit at Port Blair through  an agreement with the Andaman  & Nicobar (A&N) Administration  for ship repair at the l\rarine Dockyard,  a facility  that is currently being operated directly by the A&N Adminastration.  Under the ambit  of this agreement, CANSRU shall assist the Administration  in developing an overall  ship repair ecosystem at Andaman & Nicobar lslands. CANSRU shall also assist & associate in augmentation and modernization  of existing facilaties. Focus on skill development  in consultation with the Administration  and technical institutions  located in the lslands, is also part  of the mandate  of the agreement.  The agreement  is for a period of 30 years, during  which CSL is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair ecosystem in the island  to ensure faster turnaround and minimise  downtime of the vessels,  which are the lifeline  for the lslands.