Cochin Shipyard signs agreement with A&N Administration
KOCHI: Cochin Shipyard Ltd (CSL) has entered into an agreement with the Andaman and Nicobar (A&N) Administration to commence its operations at Marine Dockyard, at Port Blair, a facility that is currently being operated directly by the A&N Administration.
“Under the ambit of this agreement signed on November 28, 2019, CSL will assist the Administration to set up a ship repair ecosystem at A&N islands, will associate in augmentation and modernisation of the facility and will also direct efforts towards skill development in the Islands in consultation with the Administration and technical Institutions located in the Islands,” a statement from CSL said.
CSL said it will be entitled to a management fee of Rs15 crore per year. A profit share of 7.5 per cent of the profit after tax (PAT) will have to be paid by CSL to the Administration as CSL has been provided with the facility to generate income through the ship repair services at the Marine Dockyard facility.
CSL will also assist the Administration in the preparation of detailed project report (DPR) for Augmentation and Modernisation of the facility for which the company would charge 3 per cent of the project cost (as per approved DPR), according to the statement.
CSL has also offered to provide procurement services on a cost plus mark-up basis, in case the Administration so desires. The Agreement, which is for a period of 30 years, was signed at Port Blair on Nov 28 by Sudhir Mahajan IAS, Secretary (Shipping), A&N Administration and Madhu S Nair, CMD, CSL.
During the agreement period CSL is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair eco system in the island to ensure faster turnaround and thus minimise downtime of the vessels, which are the lifeline for the Islands.
CSL already has an existing MoU (since 2017) with A&N Administration for repair of large sea-going vessels of A&N Administration at its facility in Kochi.
