Marine Log - October 2007 - (Page 38) B SHIPBUILDING Hindustan Shipyard Limited (80,000 dwt) currently have the required infrastructure and capacity to build large vessels. Private shipyards have been limited by capacity but have some significant expansion plans. These include SKIL Infrastructure, which plans to follow up on its successful development of the port of Pipavav in Gujarat by developing its 200 acre Pipavav Shipyard into a facility with two large docks, capable of building, repair ing and drydocking VLCCs/LNG carriers, rigs and large containerships. Also in Gujarat, the Adani Group, whose operations include Gujarat Adani Port in Mundra, plans to build a VLCCcapable yard there and has reportedly been talking about a partnership with Japan’s Tsuneishi Shipbuilding. Meantime, construction giant L&T has been building smaller ships at a yard that is a part of its engineering complex at Hazira, Surat. It has announced plans to invest $446 million in a yard capable of building large ships and has been ICE CLASS TANKERS scouting several locations. India’s largest private shipbuilder, ABG Shipyard, Mumbai, has plans to build a new yard in Gujarat capable of building vessels up to 120,000 dwt and has bought a controlling stake in the smaller Western India Shipyard. Bharati Shipyard currently owns three shipyards, which are strategically located at Ghodbunder–Thane, Ratnagiri and Calcutta. It was in the news this year when it bought the cranes and other shipyard equipment of Britain’s Swan Hunter shipyard. It will use these asssets in upgrading its existing yards, but also has plans to invest in a large new facility. For the past several weeks, Indian newbuilding orders looked to have dried up and there’s been a lot less talk of expansion. The problem is that a subsidy scheme has run its course. Under the program, India’s shipbuilders received 30% of the value of all ships over 80 m in length or built for export customers. While shipbuilders and the Ministry of Shipping are pushing for the subsidy to be extended, the Ministry of Finance seems to be nervous of a commitment to underwrite 30% of an orderbook that’s set to soar. Outside of India, a shipbuilding subsidy of this percentage seems horrendously large. Things, though, are not quite what they seem. Indian shipyards pay some 19 different forms of taxes, duties and levies. Without getting into the intricacies of the Indian taxation system, they include many items on which foreign competitors are not taxed, dutied or levied. Proponents of the subsidy can, and do, make arguments projecting that once the volume of shipbuilding orders reaches a given level, the central government starts getting more out of the yards than it puts in via the subsidy. At press time, the extension of the subsidy scheme for another ten years seemed likely but had yet to happen. And with a fairly comfortable cushion of orders the yards were not yet screaming. ML SERIOUS AIR FOR SERIOUS PLACES Confined Space Air Ventilators 8”, 12” & 20” Models Portable Lightweight 848-8000 CFM, 110/220V 12V DC Pneumatic Americ Corporation 785 Bonnie Lane Elk Grove Village, IL 60007 For more information, call 800-364-4642 or Fax 847-364-4695 www.americ.com 38 MARINE LOG OCTOBER 2007 www.marinelog.com http://www.centa.info http://www.americ.com http://www.centa.info http://www.americ.com http://www.marinelog.com
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