Lok Sabha Question No. 2051 (UNSTARRED), answered on 2015-12-10
Subject: IPO of Cochin Shipyard Ltd.
Ministry: SHIPPING
Asked by: NARANBHAI KACHHADIA, KUNWAR HARIBANSH SINGH, SUDHEER GUPTA, SUNIL BALIRAM GAIKWAD, GAJANAN CHANDRAKANT KIRTIKAR

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.2051 TO BE ANSWERED ON 10 TH  DECEMBER, 2015

## IPO OF COCHIN SHIPYARD LTD.

## 2051. SHRI NARANBHAI KACHHADIYA:

SHRI KUNWAR HARIBANSH SINGH:

SHRI SUDHEER GUPTA:

DR. SUNIL BALIRAM GAIKWAD:

SHRI GAJANAN KIRTIKAR:

Will the Minister of SHIPPING be pleased to state:

## पोतप�रवहनमंत्

- (a) whether  the  Government  has  approved  issue  of  an  Initial  Public  Offer  (IPO)  of  Cochin Shipyard Limited (CSL) recently and if so, the details thereof and the time by which it is likely to be opened;
- (b) the revenue likely to be generated therefrom along with the purpose for which it is proposed to be utilized;
- (c) whether the Trade Unions have opposed the said decision;
- (d) if  so,  the  details thereof and the reasons therefor along with the response of the Government thereto; and
- (e) the  steps  taken/being  taken  by  the  Government  for  expansion  and  modernization  of  the shipbuilding industry and their maintenance facility in the country?

## ANSWER

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

- (a) Yes,  Madam.  On  November  18,  2015  the  Cabinet  Committee  on  Economic  Affairs  has approved  the  IPO  of  CSL.    The  total  shares  that  will  be  made  available  for  subscription  are 3,39,84,000 equity shares of Rs. 10 each consisting of a fresh Issue of 2,26,56,000 equity shares of Rs. 10  each  amounting  to  Rs.  22,65,60,000    and  sale  of  1,13,28,000  equity  shares  of  Rs.10  each amounting to Rs. 11,32,80,000.
- (b) The  funds  likely  to  be  generated  would  depend  upon  the  listing  price  of  a  share  which  is subject to market conditions.  The funds are proposed to be utilized for infrastructure expansion of CSL including projects such as International Ship Repair Facility (ISRF) and New Dry Dock project for building larger vessels /LNG Carriers.
- (c)&(d):Some  trade  unions    like  Shipyard  Employees  Sanghhave  expressed  their  opposition  to disinvestment of CSL.  Cochin Shipyard has deliberated the issue with trade unions.
- (e) Various measures have been adopted by the Government for expansion and modernization of shipbuilding industry in India.  Details of the modernization and expansion programme of the Central Public Sector Shipyards is given in Annexure .

## 1. COCHIN SHIPYARD LIMITED, KOCHI.

The following expansion programme has been chalked out, namely:-

- (a) International Ship Repair Facility (ISRF) in the Cochin Port Trust Land.
- (b) New Dry Dock project within Cochin Shipyard.

## 2. GARDEN REACH SHIP BUILDERS & ENGINEERS LIMITED, KOLKATA.

The following expansion programme enabling modular construction has been completed at a financial outlay of Rs. 605.85 Crores, namely:-

- (a) Modern  hull  shop,  upgradation  of  TRIBON  ship  design  software,  augmenting  capacity  of inclined berth, shipbuilding shop etc.
- (b) Dry  Dock  of  10,000  Ton  capacity,  inclined  berth  of  4500  Ton  Capacity,  Pier  Quay  and associated works & systems.
- (c) Goliath Crane of 250 Ton capacity.
- (d) Module Hall, Paint Cell & Equipment.

## 3. GOA SHIPYARD LIMITED, GOA.

The following expansion programme has been chalked out for execution in four phases at an estimated outlay of approximately Rs. 800 Crores, namely:-

- (a) Installation of 6000 Ton ship-lift & transfer system with associated civil structures.
- (b) Additional construction of berths for Offshore Patrol Vessels from 1 to 3.
- (c) Augmentation of Jetty Berthing Space from 4 wet berths to 10 wet berths.
- (d) Augmented material handling & crane capacity due to addition of new workshop cranes form 30 Ton to 80 Ton Capacity.
- (e) New Level Luffing outdoor cranes upto to 80 Ton Lifting capacity, two new block transporters of 100 Ton capacity.
- (f) Increased repair capability with two  berth for repairs of  ships  up  to  6000  Ton  and rationalisation of layout and material flow for efficient modular construction methodology.

## 4. HINDUSTAN SHIPYARD LIMITED, VISAKHAPATNAM.

An expansionprogramme for Repair and Refurbishment of Machinery & Infrastructure (RRMI) has been chalked out at an outlay of Rs.456.37 Crores.

## 5. MAZAGON DOCK LIMITED, MUMBAI

The following expansion programme has been chalked out at an estimated outlay of approximately Rs. 826 Crores, namely:-

- (a) Creation of Module Workshop, 300 Ton Goliath Crane, New wet Basin and Cradle Assembly Shop.
- (b) Augmentation of outfitting capacity from 3 Warships to 5 Warships and from 3 submarines to 6 submarines.
- (c) Augmentation of submarine related infrastructure.

## Annexure

*****