The government of India's Kerala State has agreed to the lease of approximately 18.16 acres (7.35 hectares) of land near Kochi to enable local company Cochin Shipyard (CSL) to expand its shipbuilding facilities.
The additional land will be used for the establishment of facilities dedicated to the fabrication of large steel blocks for ship hulls, Kerala Chief Minister V.D. Satheesan told reporters recently.
CSL plans to invest around INR50 billion (US$520 million) for the project.
The facilities will be equipped for pre-outfitting, painting and finishing of steel blocks, which will then be transported as large sections to CSL's own dry dock.
The fabricated blocks will be assembled in the dry dock to form entire ship hulls. CSL expects that this method will reduce the time spent for shipbuilding, which will then result in accelerated deliveries.
CSL will pay INR14.5 million (US$150,000) to the Kerala State Government each year under the lease arrangement.
CSL's current orderbook includes six 1,700TEU LNG-powered vessels to be built for French container liner company CMA CGM.
The first vessel slated for CMA CGM is scheduled to be delivered in 36 months while the remaining ships will be handed over within 64 months of the awarding of the contract.
