SHIP REPAIR FIRM TO OPEN 2ND SITE IN EASTERN INDIA

SHIP REPAIR FIRM TO OPEN 2ND SITE IN EASTERN INDIA

A private company setting up ship repair facilities in the western state of Goa plans a similar unit at Paradip in eastern Orissa state.

S. Shekhar Singh, managing director of Western India Shipyard Ltd. said a subsidiary will be formed for the Paradip yard. It will be capable of handling ships up to 100,000 deadweight tons compared with 60,000 dwt. at the Goa site.The Paradip yard is expected to cost 2 billion rupees ($64.5 million).

Western India expects its repair facility in Goa to be ready by October.

Costing 1.4 billion rupees, the yard known as Mormugao will have a floating dry dock and one graving dock. The 60,000-dwt.-capacity dry dock, the country's largest, was designed by Ferrostal AG of Germany and built in Singapore by Pan United Shipyard at a cost of $35 million.

The Mormugao base is a joint venture between Western India and Lisnave- Estaleiros Navais de Lisboa SA of Portugal. Lisnave injected 75 million rupees of equity, with the rest coming from Western India and financial institutions.

Lisnave will provide management, global marketing, training, software development, specialized services and upgraded technology under a five-year agreement.

Mr. Singh said Western India plans to add another floating dry dock at Mormugao at a cost of 700 million rupees. Altogether, Western India will have the largest composite repair facility in the country.

He said only 38 percent of dry dock repairs and 30 percent of wet repairs are done in India. Once Western India's Mormugao facility is ready, those percentages will rise by eight and 12 points, respectively.

A study by the Asian Development Bank shows India's competitiveness ranks quite low compared with yards overseas. Indian yards, particularly in Bombay and Calcutta, were patronized by foreign ships until 1960, but the industry didn't undertake modernization and technological improvements and lost its customers.

India has eight dry docks available for oceangoing merchant ships.