Cochin Shipyard Signs Agreement with Andaman and Nicobar Administration

KOCHI:
Cochin Shipyard Ltd (CSL) has entered into an Agreement with the Andaman & Nicobar 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 28 Nov 2019, CSL shall assist the Administration to set up a Ship repair ecosystem at Andaman & Nicobar islands, shall associate in Augmentation and Modernization of the facility and shall also focus efforts towards Skill Development in the Islands in consultation with the Administration and Technical Institutions located in the Islands.

Cochin Shipyard Ltd (CSL) will be entitled to a management fee of ?15 crores per annum. A profit share of 7.5% of PAT shall be payable by CSL to the Administration for profit generated by Cochin Shipyard Ltd (CSL) through providing Ship Repair Services at the Marine Dockyard facility. Cochin Shipyard Ltd (CSL) shall assist the Administration in the preparation of DPR for Augmentation and Modernisation of the facility for which the Company would charge 3% of the project cost (as per approved DPR). Cochin Shipyard Ltd (CSL) has also offered to provide procurement services on a Cost plus Mark-Up basis, in case the Administration so desires.

The Agreement was signed at Port Blair on 28 Nov 2019 by Sudhir Mahajan, Secretary (Shipping), Andaman & Nicobar Administration and. Madhu S Nair, CMD, Cochin Shipyard Ltd (CSL). The Agreement is for a period of 30 years, during which Cochin Shipyard Ltd (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 minimise downtime of the vessels, which are the lifeline for the Islands Cochin Shipyard Ltd (CSL) already has an existing MoU (since 2017) with Andaman & Nicobar Administration for repair of large sea going vessels of Andaman & Nicobar Administration at its facility in Kochi, which is being successfully executed, which has in turn led to the conclusion of this Agreement for long term association.