Cochin Shipyard Ltd (CSL) has entered into an Agreement with the Andaman and Nicobar Administration to commence its operations at Marine Dockyard, at Port Blair, a facility that is currently being operated directly by the A&N Administration. Under the ambit of this Agreement signed on 28 Nov 2019, CSL shall assist the Administration to set up a Ship repair ecosystem at A&N islands, shall associate in Augmentation and Modernisation of the facility and shall also focus efforts towards Skill Development in the Islands in consultation with the Administration and Technical Institutions located in the Islands.
CSL will be entitled to a management fee of Rs 15 crores per annum. A profit share of 7.5% of PAT shall be payable by CSL to the Administration for profit generated by CSL through providing Ship Repair Services at the Marine Dockyard facility. CSL shall assist the Administration in the preparation of DPR for Augmentation and Modernisation of the facility for which the Company would charge 3% of the project cost (as per approved DPR). CSL has also offered to provide procurement services on a Cost plus Mark-Up basis, in case the Administration so desires.
The Agreement was signed at Port Blair on 28 Nov 2019 by Shri Sudhir Mahajan IAS, Secretary (Shipping), A&N Administration and Shri. Madhu S Nair, CMD, CSL. The Agreement is for a period of 30 years, during which CSL is expected to spruce up the operational efficiency of the dockyard as well as improve the overall ship repair eco system in the island to ensure faster turnaround and minimise downtime of the vessels, which are the lifeline for the Islands CSL already has an existing MoU (since 2017) with A&N Administration for repair of large sea going vessels of A&N Administration at its facility in Kochi, which is being successfully executed, which has in turn led to the conclusion of this Agreement for long term association.
Shares of Cochin Shipyard Ltd was last trading in BSE at Rs.403.55 as compared to the previous close of Rs. 395.55. The total number of shares traded during the day was 8801 in over 702 trades.
The stock hit an intraday high of Rs. 407.25 and intraday low of 399.45. The net turnover during the day was Rs. 3546248.