Revival of India’s Shipbuilding Industry Gains Momentum
India’s shipbuilding sector is witnessing a resurgence, particularly at the Pipavav yard, now known as Swan Defence and Heavy Industries Limited (SDHI). The yard has secured a contract to complete five ships that have been idle since 2009 due to previous operational failures. This marks a significant step in revitalizing the shipbuilding industry, with SDHI also announcing a deal to finalize the construction of offshore supply vessels (OSVs) that were left unfinished for years.
Contracts Signal a New Era for Shipbuilding
SDHI has made notable strides in reviving projects that were stalled during the previous management’s financial difficulties. The company recently completed a deal to sell the hulls of five incomplete offshore supply vessels to San Maritime India, a well-established offshore operator with a fleet exceeding 40 vessels. The acquisition was made on an “as is, where is” basis, and San Maritime has contracted SDHI to finish the construction of these vessels. Originally, these ships were part of a larger order placed in 2009 by India’s Oil and Natural Gas Corporation, which included a total of twelve OSVs. While the first seven vessels were successfully completed and delivered, the remaining five faced delays due to the yard’s financial collapse, which ultimately led to its bankruptcy in 2017.
In addition to the OSV project, SDHI has also secured a defense export order from the Government of Oman. This order includes a partially constructed training ship for the Indian Coast Guard, which had been left unfinished before the bankruptcy. The new vessel, measuring 104 meters (341 feet) and displacing approximately 3,500 tons, is expected to be delivered within 18 months. It will feature modern classrooms, training offices, and accommodations for up to 70 officer cadets, along with advanced navigation and communication systems, enabling it to conduct helicopter operations.
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Strategic Growth and Future Prospects
Under its new leadership, SDHI aims to play a pivotal role in India’s ambition to enhance its shipbuilding capabilities and establish itself as a key player in the global maritime market. Earlier this year, the company secured India’s first chemical tanker order, valued at $227 million, which involves the construction of six 18,000 dwt chemical tankers for Rederiet Stenersen. Each tanker will measure 150 meters (492 feet) and will be built to Ice Class 1A standards, featuring advanced dual-fuel LNG-ready hybrid propulsion systems.
The Indian government has also introduced targeted financial assistance and incentive schemes to bolster the shipbuilding industry. SDHI emphasizes its commitment to creating a robust shipbuilding ecosystem that supports local vendors and service providers. These developments not only reinforce India’s indigenous shipbuilding capabilities but also enhance its stature as a growing global maritime hub.
