Cochin, Kattupalli and Pipavav Shipyards to involve in LNG shipbuilding in collaboration with partners

The three liquefied natural gas (LNG) carrier ships of the proposed nine to be acquired by the Gas Authority of India Ltd (GAIL) would be built in three shipbuilding facilities – Cochin Shipyard, L&T made Kattupalli and Pipapav ShipyardLtd, near Rajkot, in tune with the Prime Minister’s recently announced ‘Make in India’ policy.

These highly technical and expensive projects which would cost around Rs 1,500 crore each, has been assigned to these three ports in India, while the rest of the six would be built in somewhere else, while all are expected to be operated by the Shipping Corporation of India, according to Vishwapati Trivedi, Secretary, Ministry of Shipping, Government of India.

Speaking to the reporters after launching a new trade ship service between Chennai Port and Myanmar, by Shipping Corporation of India (SCI), he said that the preparatory works are going on for the ship building, which require a technology partner for the Indian firms. The timeline forLNG ship building is six years.

“There are several things we have done in line with the Make in India policy announced by the Prime Minister. On the shipping side, we are doing several things, like ship building. The Government of India is trying to float very attractive promotional policy to encourage ship building in India,” he said.

Elaborating on the proposed LNG ship building project, he said that the Indian shipyards has not done that kind of ships and the preparatory works to prepare these shipyards to engage in such huge projects are on. The LNG ships, which are for GAIL, would be to transport LNG from long distance.

The government has been moving in the direction of Looking East, increasing relationship with the countries in the Eastern side of the subcontinent. India is signing an agreement with Bangladesh where India would be allowing a lot of facilitations to the Bangladesh vessels which are really not up to the specifications or dont have a classification yet. A proposal has been accepted by the Government of India in this regard, he said.

“Bangladesh ships are yet to make the classification standards or the specs which are required before they are allowed into the Indian Port entry routes. They don’t seem to have the comprehensive coverage we require. But they are keen to bring their ships to that level and keen to get that rank of insurance cover,” he said.

“I think in the initial stages we have to give a few concessions for them. We will also provide some of the facilities available in the ports, so that the trade gets kicked off. When the trade gets kicked off, in a few years time they can catch up to the norms required,” he added.

The government is also thinking of a scheme under which the trade would be provided with some incentive if they opt for coastal movement rather than through rails and roads.

He added that while the Ministry of Shipping wants to do various measures to decongest the Chennai Port and bring in an inland water way in Chennai, various actions by the State government are affecting completion of those projects.

Speaking about the launch of SCI Kamal, the ship from Chennai Port to Myanmar, he said that it perceived not only as a commercial project, but more as a non-commercial, value creation project under which the trade route between the two countries could be revived. While the Indo-Myanmar bilateral trade is over Rs 1000 crore, most of it is semi precious stones, which are not done through shipments. He said that there is opportunity to build trade relation based on shipments and this is a joint effort in collaboration with the Ministry of External Affairs, Ministry of Shipping and theMinistry of Commerce and Industry. The ship carries containers from Colombo, Chennai port and Krishnapatnam, making use of the maximum capacity. The ship carries cement to Myanmar and would bring back pulses and timber.

Source: Business Standard