Wednesday, December 11, 2024

 

India’s Pipavav Shipyard Delivers its First Project after Re-Opening

Pipavav Shipyard
Courtesy Swan Energy Ltd.

Published Dec 8, 2024 8:59 PM by The Maritime Executive

 

 

India’s Pipavav Shipyard has completed its first project after resuming operations in August. The yard, currently owned by Swan Energy, has been refitting the Indian Coast Guard patrol vessel Raj Ratan since September 4, which was its first contract under the new owner. This project was completed ahead of schedule on November 30, according to a statement by Swan Energy Limited (SEL).

The re-opening of Swan’s Shipyard came as positive news at a time India is reviving its domestic shipbuilding sector. The yard has the largest dry dock in India, measuring 662 meters by 65 meters. It also features modern fabrication, piping and painting facilities, and it has 500 acres of working space.

Pipavav Shipyard was founded in 1997 and became the largest private shipbuilding firm in India. During the Great Recession, it sank into bankruptcy, and it was sold in 2016 to the Indian conglomerate Reliance Group. However, it failed to settle all its debt obligations, and in 2019 the shipyard was pronounced insolvent, initiating a bid for a new buyer to recover an estimated $1.2 billion in debt.

Swan Group acquired Reliance’s yard over the course of 2022-24, and it pledged to invest $500 million to return the shipyard to its former glory. With a rising global demand for shipbuilding, Swan’s Pipavav Shipyard will focus on building bulkers, tankers and gas carriers.

“The resumption of operations at our shipyard marks the successful culmination of our dedicated efforts to rejuvenate this strategic facility. Delivering our first Indian Coast Guard vessel underscores our commitment to enhancing India’s ship repair and shipbuilding capabilities,” said Vivek Merchant, Director of Swan’s Pipavav Shipyard.

The re-opening of the Pipavav yard comes at an active time for Indian shipbuilding. Indian yards have recently signed naval repair contracts with the U.S. Navy, attracted interest in potential orders from the Russian government, and engaged with leading South Korean shipbuilders to form technical collaborations and joint ventures. Recently, a high-level Indian delegation led by T.K. Ramachandran, the Secretary of the Ministry of Ports, Shipping and Waterways, visited South Korea to study advanced shipbuilding techniques. Formal agreements for this shipbuilding collaboration are anticipated during India’s Minister for Ports visit to South Korea in March 2025.   

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