Visakhapatnam: Hindustan Shipyard Ltd (HSL) has teamed up with Korean giant Hyundai Shipyard to build five ships at an estimated cost of Rs9,500 crore. HSL and Hyundai have signed a memorandum of understanding (MoU) in this regard. HSL will make vessels as a part of the ‘Make in India’ programme. In the series of the five vessels, the first ship will be made at Hyundai Shipyard, while HSL will make remaining four ships at its facility here, according to a top official at the public-sector major.
Revealing the strategies of the company at a press conference here on Wednesday, Chairman and Managing Director of HSL Rear Admiral LV Sarat Babu said: “The MoU with Hyundai Shipyard is for only adopting technology and expertise only. The first vessel would be sailed by October 2022. Subsequently, one ship in every 10 months would be completed. The strategies have been completed and the Hyundai Shipyard will provide its expertise and HSL staff would be trained in the advanced skills by the Korean teams.”
Giving clarity on privatization, Sarat Babu said said that the HSL will never be privatised as the public-sector major is functioning under the Union Ministry of Defence.
Elaborating on the special vessels, the CMD further said that the Indian Government has given order for two vessels at an estimated cost of Rs2,500 crore. The complete plan and strategies would be finalised shortly, while adding that all the ships are for the Indian Navy operations only.
Talking about the order book of the company, the CMD agreed on the fact that at present the position was not satisfactory. However, he added that from December 2018, the cash flow of the company would be better as major orders would come into force. During in the 2016-17, the HSL recorded a total income of Rs650.08 crore and the value of production of Rs629.04 crore. The company registered an operating profit of Rs37 crore, for the first time in the past 35 years, said Sarat Babu.
During the past 20 months, almost all the wings of the yard have been reconstructed and repaired. HSL is competing in international markets with new hope and confidence. The company has registering excellent parameters in all the departments and areas. HSL provides employment opportunity to over 40,000 people directly and indirectly.