Cochin Shipyard (CSL) in India has signed an agreement to commence its operations at Andaman and Nicobar (A&N) Administration’s Marine Dockyard at Port Blair.
According to the agreement, CSL will extend its support to A&N Administration to establish a ship repair service.
CSL will upgrade the facility and will focus on skill development in collaboration with the Administration and Technical Institutions.
For 30 years, the deal will enable CSL to improve the operational efficiency of the dockyard and the overall ship-repairing services on the island.
The goal of the agreement is to ensure fast turnaround and reduce ship downtime.
The contract follows a memorandum of understanding (MoU) signed in 2017 with A&N Administration for repairing of large seagoing ships at its facility in Kochi.
Cochin Shipyard will receive an annual fee of Rs150m ($2.09m) for its services. Additionally, CSL will acquire a profit share of 7.5% of PAT for providing ship repair services at the Marine Dockyard facility.
CSL will provide procurement services on a cost-plus mark-up basis if required by A&N Administration.
CSL is the first greenfield firm in India and serves the defence, as well as commercial shipping sector across the world.
Last month, the shipyard acquired 5.42 million shares that is equivalent to a 26% stake in Hooghly Cochin Shipyard from Hooghly Dock and Port Engineers in an Rs50.6m ($703,220) deal.