Advertisement
Cochin Shipyard Ltd (CSL) announced plans to raise around INR 6,000 crore over the next five to six years to support its capital-expenditure programme. The company said it will fund this through a mix of government-assisted schemes, multilateral loans from East-Asian agencies, issuance of blue bonds and internal accruals. CSL indicated it plans to use the enhanced Shipbuilding Financial Assistance policy (which offers 20-25 % incentives) and is already exploring a greenfield shipyard conceptualised at USD 2-3 billion. Defence contracts currently make up roughly two-thirds of its order book.
The state-run shipyard, Cochin Shipyard Ltd (CSL), has revealed that it intends to mobilise roughly INR 6,000 crore in funding over the coming five to six years for its capital-expenditure (capex) agenda. The company officials explained that the funds will be sourced through a combination of government schemes, loans from multilateral agencies (especially in East Asia), the issuance of blue bonds (worth around USD 50 million) and from internal accruals. Advertisement
CSL noted that under the enhanced Shipbuilding Financial Assistance (SBFA) policy it can tap incentives of 20-25 % once contracts are signed. For instance, for a project worth INR 3,000 crore the incentive could amount to approximately INR 750 crore. For brown-field expansions the company intends to use the ship-building development scheme (through direct assistance or borrowing at a subsidised rate). Officials added that sourcing low-cost long-term loans via country-to-country credit lines from Singapore and other East Asian agencies is under study.
On the business side, CSL has secured new commercial ship-building orders from Europe and domestic clients as it broadens beyond its traditional defence work. However, defence contracts still make up about two-thirds of its order book. The shipyard is also at the conceptual stage of developing a green-field shipyard project, estimated at USD 2-3 billion, to enhance its global footprint.
Historically, CSL has invested significantly in expanding its infrastructure over the last seven years it committed roughly INR 3,250 crore and completed a new large dry-dock (310 m with 600 t crane) and a 6,000-t ship-lift international ship-repair facility. The current plan therefore builds on that foundation. By combining internal strength with supportive policy incentives and global financing options, CSL is positioning itself to scale both its commercial and defence operations, and to meet the rising global demand for larger vessels and repair services.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
