KOCHI: Cochin Shipyard Ltd (CSL) has entered into an agreement with Andaman and Nicobar administration to commence its operations at Marine Dockyard at Port Blair, a facility that is currently being operated directly by the administration. Under the ambit of the agreement, CSL shall assist the administration to set up a ship repair ecosystem at Andaman and Nicobar islands. The shipyard shall associate in augmentation and modernisation of the facility and shall also focus on skill development in the islands in consultation with the administration and technical institutions located in the islands, an official release said.
CSL will be entitled to a management fee of `15 crore per annum. A profit share of 7.5 per cent of Profit After Tax (PAT) shall be payable by the shipyard to the administration for profit generated by CSL by providing ship repair services at the marine dockyard facility. The shipyard shall assist the administration in the preparation of Detailed Project Report (DPR), for augmentation and modernisation of the facility, for which the company would charge three per cent of the project cost (as per approved DPR).
CSL has also offered to provide procurement services on a Cost-plus markup basis, in case the administration so desires. The agreement was signed at Port Blair on November 28, 2019, by Sudhir Mahajan, secretary (shipping), Andaman and Nicobar administration and Madhu S Nair, chairman and managing director, CSL.
The agreement is for 30 years, during which the CSL is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair ecosystem in the island to ensure faster turnaround and minimise downtime of the vessels, which are the lifeline for the islands.