Tata expresses interest in setting up massive ship repair facility near Vizhinjam

THIRUVANANTHAPURAM: In addition to shipbuilding, the Tata Group has expressed interest in setting up a large ship repair and maintenance facility in Kerala. The proposed facility is expected to come up alongside the planned shipyard near Vizhinjam Port. The company has indicated its willingness to invest Rs 10,000 crore in the project. The Kerala government has asked Tata to submit a Detailed Project Report (DPR), while Chief Minister V. D. Satheesan has assured the company that the required land will be acquired and made available for the project.

Vizhinjam is located just 18.52 kilometres from one of the world's busiest international shipping routes connecting Europe, Africa, and East Asia. It is also only 137 kilometres from Kochi. Around 250 ships pass through this route every day, taking the annual total to nearly 70,000 vessels. Tata plans to provide repair and maintenance services for these ships while they are on international voyages.

At present, Colombo Dockyard is the busiest ship repair centre in the region. It repairs more than 200 ships every year. However, vessels have to travel nearly five hours away from the main international shipping lane to reach Colombo. In comparison, ships can reach Vizhinjam in less than 50 minutes, giving Kerala a significant competitive advantage.

The Tata Group has also shown interest in collaborating with Cochin Shipyard, which has a strong order book, including defence projects, that will keep it occupied for the next seven years. The company is particularly interested in block fabrication, a process in which different sections of a ship are built separately on land and later assembled at the shipyard. The proposed repair facility will be capable of carrying out a wide range of services, including engine repairs, painting and cleaning, propeller replacement and electrical work.

Kerala set to become a major maritime hub

• The project could generate tens of thousands of direct jobs, along with several times more indirect employment in allied industries and service sectors.
• It is expected to create major business opportunities for industries such as steel, heavy engineering, marine equipment, electronics, and other supporting sectors.
• The investment could establish Kerala as a leading player in India's maritime industry while accelerating the growth of the state's coastal economy.
• If Kerala begins exporting ships or ship components, it could provide a significant boost to the state's economy and industrial growth.
• Tata's Artson Engineering had earlier explored a project with Malabar Cements to build a 100-ton passenger boat, reflecting the group's long-standing interest in Kerala's maritime sector.

Centre's support for shipbuilding
Rs 70,000 crore - Central government's shipbuilding package.
Rs 25,000 crore - Maritime Development Fund for shipyards.
Rs 24,736 crore - Central assistance scheme to promote shipbuilding.

"Discussions with the Tata Group are progressing well. The government will fast-track all necessary approvals without any unnecessary delays."
- V. D. Satheesan, Chief Minister