Lok Sabha Question No. 2781 (UNSTARRED), answered on 2015-08-06
Subject: Loss of Ship Building Companies
Ministry: SHIPPING
Asked by: KAMLA DEVI PATLE

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.2781 TO BE ANSWERED ON 6 TH  AUGUST, 2015

## LOSS OF SHIP BUILDING COMPANIES

## 2781.     SHRIMATI KAMLA DEVI PAATLE:

Will the Minister of SHIPPING be pleased to state:

## पोत प�रवहन मंत्

- (a)          whether the ship building companies have incurred huge losses due to global economic recession and higher interest rates;
- (b)          if so, the details thereof during each of the last three financial years;
- (c)          whether the Government proposes to allow loan restructuring by such companies;
- (d)          if so, the details and the objectives thereof; and
- (e)            the  other  steps  taken/being  taken  by  the  Government  for  revival  of  ship  building companies?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)

- (a)&(b):Yes,  Madam.  Some  shipbuilding  companies  have  incurred  losses  during  last  three financial years whose details are placed at Annexure .
- (c)&(d):In so far as HDPEL is concerned, Cabinet has approved 'Revival-cum-Restructuring Plan' of HDPEL and waived off Government Loan and Interest and also approved J.V  formation  with  Private  Sector  Company.  In  so  far  as  HSL  is  concerned,  the company has submitted a proposal for Financial Restructuring for an amount of Rs. 1209.81 crore to Ministry of Defence in 2014 and recently on 16.06.2015.
- (e) Shipbuilding  industry  being  globalised  in  nature,  the  present  global  downturn  has also affected the domestic ship-building industry. The shipbuilding subsidy scheme was  extended  to  all  Indian  shipyards  on  October  25,  2002.  The  subsidy  scheme expired in 2007. The Government decided to liquidate the committed liabilities in the year 2009 for all the cases for which contracts had been signed by August 14, 2007, for another five  years starting from the  year 2009 and ending March 31, 2014 and accordingly,  shipbuilding  subsidy  was  released  to  Indian  shipyards  till  March  31, 2014.  Suggestions  have  been  received  by  the  Government  of  India  from  various stakeholders for promotion of local shipbuilding industry which include measures for financial  assistance;  grant  of  infrastructure  status;  domestic  eligibility  criteria;  tax incentives and special dispensation for stressed shipyards. No  time-lines for implementation of the suggestions can be given at this stage.

.

## Annexure

| S.No   | Name of Shipyard                             | Losses (in crores)   | Losses (in crores)   | Losses (in crores)   |
|--------|----------------------------------------------|----------------------|----------------------|----------------------|
| (1)    | (2)                                          | 2011-12 (3)          | 2012-13 (4)          | 2013-14 (5)          |
| 1.     | Alcock Ashdown (Gujarat) Ltd.                | Nil                  | 96.56                | 73.61                |
| 2.     | Cochin Shipyard ltd.                         | Nil                  | Nil                  | Nil                  |
| 3.     | Garden Reach Shipbuilders& Engineers Ltd.    | Nil                  | Nil                  | Nil                  |
| 4.     | Goa Shipyard ltd.                            | Nil                  | Nil                  | 61.09                |
| 5.     | Hindustan Shipyard Limited(HSL)              | 85.98                | 55.17                | 46.21                |
| 6.     | Hooghly Dock &Port Engineers Limited (HDPEL) | Nil                  | 39.84                | Nil                  |
| 7.     | Mazagon Dock Ltd.                            | Nil                  | Nil                  | Nil                  |
| 8.     | Shalimar Works Ltd.                          | 17.48                | 21.44                | 18.49                |
| 9.     | Dempo Shipbulding and Engineering Ltd.       | Nil                  | Nil                  | 9.60                 |
| 10.    | ABG Shipyard                                 | Nil                  | Nil                  | 296.18               |
| 11.    | Bharati Shipyard                             | 48.59                | 539.76               | 1025.84              |
| 12.    | Chowgule &Co. Ltd.                           | Nil                  | Nil                  | Nil                  |
| 13.    | Ferromar Shipping Pvt. Ltd.                  | Nil                  | Nil                  | Nil                  |
| 14.    | A.C. Roy &Comp. Ltd.                         | Nil                  | Nil                  | Nil                  |
| 15.    | Bristol Boats                                | 0.55                 | 0.96                 | 1.20                 |
| 16.    | Tebma Shipyards                              | 12.73                | Nil                  | 66.69                |
| 17.    | L &TShipbuilding                             | Nil                  | 136.82               | 355.11               |
| 18.    | N N Shipbuilders and Engineers Pvt Ltd.      | Nil                  | Nil                  | Nil                  |
| 19.    | Pipavav Def. &Off. Engg. Co.                 | Nil                  | Nil                  | Nil                  |

(Source: Shipbuilding Statistics 2013-14, Shipyards Association of India and Central Public Sector Shipyards)

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