DEVELOPMENT OF SHIPYARDS AT MAHUVA BANDAR
The site is strategically located at Mahuva Bandar, approximately 110 kms. south of Bhavnagar. It is suitable for development of two shipyards, a large shipyard and a medium size shipyard. The large shipyard can be spread over an area of 350-400 acres with an investment of approx. IN RS.1800 crores (in phases) and a medium size shipyard over an area of 125-150 acres with an investment of approx. IN RS.650 - 750 crores (in phases). The two shipyards would further need total investments of approx. IN RS. 1500 crores towards upgradation of infrastructure, equipments, production processes, development of skills and management in order to enhance productivity to international standards. The cost of developing common dredged channel and basin can be shared which will reduce the overall cost of development for each shipyard.
With the development of these two shipyards, direct employment for approx. 7500 - 9000 persons shall be generated along with indirect employment for many more. The large shipyard would employ approx. 5500 persons in the ship building business and 1500 persons in the ship repairing business. The medium size shipyard would employ approx.1650 persons in the ship building business and 850 persons in ship repairing business. The product mix shall include high value vessels like offshore & naval vessels and other specialized vessels.The combined annual turnover of these two shipyards, when fully operational, shall be approx. IN RS. 8500 - 9,000 crores.
The development of these shipyards will require skilled personnel and the same can be provided by upgrading the ITI at Mahuva Bandar and also establishing a Ship Building/ Ship Repair Skill Development Center. The Ship Building/Ship Repair Skill Development Center would need co-operation and help from various public and private sector ship building/ship repair industries, training and R&D institutes across the nation. The IITs and other premium engineering colleges should collaborate and carry out extensive research and development in the fields of ship building & ship repairing. In order to develop higher skills in the field, the possibility of joint venture with reputed ship builders across the globe should be considered.
The areas for development of shipyards should be notified as Sector Specific SEZ with common amenities such as wide connecting roads, electricity and potable water etc. Gujarat Maritime Board should be the facilitator and co-ordinator for smooth and efficient functioning of the port. The shipyards should be directly connected to the main road by a six lane road for smooth and efficient operations. The development of other facilities like housing, transport, water and electricity supply, schools and colleges and other related civic amenities will need planning and development at the same time.
The regulatory framework (customs, central excise etc. ) will need to be transformed completely in order to support ship building/ship repairing industries. The initiative taken by the present government to establish ship building development fund would also support this industry. The development of ancillary industries will be required to make the industry competitive and sustainable; it will also provide large employment in the industry.
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