Apeejay group revives project as partner Bharati Shipyard goes bust

Apeejay Surendra Group, which owns UK’s Typhoo Tea, is reviving a stalled project it had started a decade ago along with Bharati Shipyard Ltd, which is now facing insolvency proceedings.

In 2007, Apeejay group formed a joint venture, Bengal Shipyard, with Bharati Shipyard now known as Bharati Defence and Infrastructure (BDIL).

But with the JV partner going bust, Apeejay, headed by Kolkata-based Karan Paul, has decided to go alone and has even enlarged the scope of the project, sources told DNA Money.

The revised project, submitted by promoter Apeejay Shipping Ltd to government agencies for clearances, involves what the project calls marine industrial cluster spread over 500 acre to be built at a cost of Rs 2,000 crore.

“The maritime cluster under consideration would broadly comprise of core and non-core maritime activities like shipbuilding, ship repair, captive cargo handling facility of 4.8 million tonne per annum, logistics and supporting services, marine heavy engineering manufacturing, repair facility, classification societies and marine surveying services, maritime education and training centre and maritime R&D and technology centre. The project is expected to entail investments of approximately Rs 2,000 crore depending on the future growth of maritime sector and business opportunities,” the project report accessed by DNA Money said.

The proposed shipyard is targeted to serve nearly about 40 vessels a year of varying sizes including Panamax, Handymax, defence and other offshore vessels for routine as well as capital repairs.

“Of the above areas, the land and outfitting facility and the shipyard are planned to be rolled out first, commencing operations from the third year (two years of construction and setup), and stabilising over five to six years,” the project report said.

The proposed cluster would come up over an area of around 554 acre at Kulpi, about 78 kilometre downstream from Kolkata on the banks of Hoogly river where Bengal Shipyard is already in possession of 524 acre of land and the balance 30 acre land would only need to be get acquired, sources said.

The development comes when BDIL, struggling for survival, has provided for diminution in the value of investment aggregating Rs 31.62 crore in Bengal Shipyard for pre-operative work.

SETTING SAIL

• The cluster would come up at Kulpi near Kolkata where Bengal Shipyard is already in possession of 524 acre land, sources said
   
• The revised project involves marine industrial cluster spread over 500 acre to be built at a cost of Rs 2,000 crore