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Cochin Shipyard 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 November 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 crore 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
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.
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