1. National Conference on Infrastructure and Ports –
Emerging Areas of Opportunities in Port Led Growth
and Development with a Special Focus on “India’s Port
Super Star – Gujarat” at AMA Auditorium, Ahmedabad
Management Association, Ahmedabad on
July 17-18, 2009
PRESENTATION BY :
CAPT. GOPAL JHA.
PRESIDENT (SHIPPING, LOGISTICS & INFRA)
BHARATI SHIPYARD LIMITED.

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BHARATI SHIPYARD LIMITED
302, WAKEFIELD HOUSE
SPROTT ROAD,
BALLARD ESTATE,
MUMBAI 400 001.

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View of Ratnagiri Yard

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View of Ratnagiri Yard
View of Ratnagiri Yard

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Established in 1976, as a Private Limited Company in
Mumbai.
Private Sector Indian Shipyard.
Engaged in the design and construction of various types
of sea going, coastal, harbour, inland crafts and vessels.
Specialises in ship repairs of technical nature.
Vessels required for Offshore Industry (OSVs, MSVs,
PSVs, etc), Rigs, Manoeuvrable and Power Packed Ocean
Going Tractor Tugs, Cargo Ships, Tankers, Dredgers, etc.
Ship Yards at Dabhol, Ratnagiri, Ghodbunder
(Maharashtra), Mangalore, Goa and Kolkatta.
Greenfield Ship Yards at Dabhol and Mangalore.
Design Office in Mumbai.
INTRODUCTION : BHARATI

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Construction of Self-Elevating Jack-up Drill Rig of 470 ft., facilities for
production at Dabhol created within record time of 18 months.
Construction of sophisticated Offshore Vessels including MSV, PSV,
AHTS, etc.
Increase in level of technology (Present 2 – 2.5, Targeted 3.5 – 4.0)
Use of Automatic CNC Cutting & Welding machines, Panel Lines, Pipe
Bending Machines, etc.
Acquisition of Equipments & Machinery of Swan Hunter Shipyard. The
machinery and equipments were upgraded in the year 2003 as per the
requirements of MOD for construction of advanced vessels for Navy. All
machinery and equipments were maintained in excellent operational
condition, a pre-condition of MOD.
Development of Greenfield Shipyards at Dabhol & Mangalore.
Orders from across the world including France, Norway, South America,
Netherlands, Singapore, Germany, Middle East, etc.
RECENT ACHIEVEMENTS

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Plans to build vessels upto 100,000 DWT.
Capacity to build Jack-up Drill Rigs.
Spread over more than 250 Acres area, proposed to set up
SEZ.
Proposed Investments of Indian Rupees 600 Crores.
Employment to approx. 2000 persons directly in the
shipyard.
Capacity to repair vessels upto 100,000 DWT and
Refurbishing/Repairs of Jack-up Drill Rigs.
State of the art infrastructure and high level of
technology.
GREENFIELD EXPANSIONS
AT DABHOL, MAHARASHTRA

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Project Implementation in progress.
Plans to build vessels upto 60,000 DWT.
Develop Capabilities to repair vessels upto 60,000 DWT.
Spread over 90 Acres area.
Proposed investments of Indian Rupees 400 crores.
Employment to approx. 2000 persons directly in the
shipyard.
Part of Swan Hunter equipments to be installed at the yard.
Located in ONGC SEZ.
GREENFIELD EXPANSIONS AT
MANGALORE

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To set up state of the art greenfield shipyard at Mahuva
Bandar in Gujarat and commence production by First
Quarter of 2011.
To set up a Mega Shipyard (JV) on the East Coast of India
to build and repair vessels upto 2,50,000 DWT.
To build technologically advanced vessels including Semi-
Submersible Rigs, FPSO, Offshore Structures, Chemical
Carriers, Gas Tankers, etc.
To upgrade to technology level 3.5 – 4.0 at the greenfield
yards.
To take active interest for development of supply chain in
the country and achieve high level of indigenisation.
FUTURE PLANS OF BHARATI

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SELF ELEVATING JACK UP DRILL RIG :
CONSTRUCTION IN PROGRESS AT USGAON
(PORT DABHOL) SHIPYARD

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SELF ELEVATING JACK UP DRILL :
CONSTRUCTION IN PROGRESS AT USGAON
(PORT DABHOL) SHIPYARD

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SELF ELEVATING JACK UP DRILL RIG :
CONSTRUCTION IN PROGRESS AT
USGAON (PORT DABHOL) SHIPYARD

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GREENFIELD SHIPYARD
AT USGAON (PORT DABHOL), MAHARASHTRA.
LOCATION OF SHIPYARD
Bharati Shipyard Limited has established its new shipyard facilities on the north bank of
river Vashishti, located on Latitude 17º 35.50´ North, Longitude 073º 11.80´ E. The shipyard
is surrounded by villages Usgaon on north, Navasewadi on east and Dabhol on west; it is
surrounded by hills on these three sides and river Vashishti flows south of the shipyard.
The shipyard is located approx. 3.5 nm inwards from the mouth of the river where it joins
the Arabian Sea.
The site is located approx. 250 kms. south of Mumbai by road and approx. 94 nm by sea.
The site can be approached from Mumbai by road following NH-17 upto Khed and via
Dapoli – Dabhol route. It is approx. 70 kms. from Khed junction via Khed-Dapoli-Dabhol
route. The alternative route, diverting to right from NH-17 at Toll Fata (approx. 15 kms
before Mahad) and then following Toll Fata-Ambet-Mahapral-Mandangad-Dapoli-Dabhol
roads saves approx. 45 minutes. The nearest airport is located at Mumbai. The nearest
railheads are Khed/Chiplun (Konkan Railway).
The site can be approached by road from south (Ratnagiri-Goa) following NH-17 upto
Chiplun and then following Shringar Tali-Guhagar-Dhopave Jetty roads and further
crossing over to Dabhol village by car ferry which plies between Dabhol and Dhopave.

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GREENFIELD SHIPYARD
AT USGAON
(PORT DABHOL), MAHARASHTRA.

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DEVELOPMENT OF GREENFIELD
SHIPYARD AT DABHOL IN MAHARASHTRA

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DEVELOPMENT OF AMENITIES FOR
SHIPYARD AT USGAON (PORT DABHOL)

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UNLOADING OF SWAN HUNTER
MACHINERY AT DABHOL

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SWAN HUNTER SHIPYARD
• Swan Hunter Shipyard - one of the major shipyards in
UK.
• Built air craft carriers, offshore platforms and other very
sophisticated and advanced vessels for Ministry of
Defence.
• Entire plant, machinery and equipments which were
upgraded in 2003 as per conditions of MOD and
maintained in excellent operational condition, acquired
by Bharati.
• Acquisition will enable Bharati to build vessels upto
100,000 DWT and other advanced vessels.
• Acquisition to enable Bharati increase the level of
technology to 3.5 in the new shipyards.

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2 NOS. 180 TONS LUFFING CRANES

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150 M. x 40 M. FLOATING DOCK FROM
SWAN HUNTER TOWED TO USGAON
(PORT DABHOL) SHIPYARD

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CNC AUTOMATIC PLATE CUTTING
MACHINE

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1554 MM DIA x 24 M. LONG PIPE
PROFILE CUTTING MACHINE

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1200 TONS x 40 FEET HYDRAULIC
FLANGING PRESS

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2000 TONS x 42 FEET HYDRAULIC
ROLLING PRESS

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PANEL LINES FOR HIGH VOLUME
STEEL PROCESSING

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ROBOTISED SECTION CUTTING
MACHINE

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AUTO STIFFENER FITTING
MACHINE

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200 TONS PRESS BRAKE

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15 TONS MAGNETIC CLAMPING EOT
CRANE FOR STEEL STOCKYARD

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STEEL FABRICATION HALL

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STEEL FABRICATION HALL

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55 TONS EOT CRANES FOR
FABRICATION HALL

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170 TONS TRANSPORTER

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LUFFING CRANES : 180 TONS
LIFTING CAPACITY

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PROPOSED SHIPYARD AT
MAHUVA BANDAR,
BHAVNAGAR,
GUJARAT.

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PROPOSED SHIPYARD AT
MAHUWA BANDAR, BHAVNAGAR,GUJARAT.
ESTIMATED CAPITAL EXPENDITURE (PHASE-I)
Sr. Particulars Rs. in Crores
1 Land, Dredging, Design & Consultancy 70.00
2 Floating Dock/Dry Dock 120.00
3 Outfitting/Repair Jetties 60.00
4 Plant, Machinery, Cranes & other Equipments 270.00
5
Fabrication, Assembly, Administrative Blocks &
Outfitting Sheds
50.00
6 Detailed Engineering Design & Drawings 10.00
7 Miscellaneous Structures, R&D Center 20.00
Total 600.00

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PROPOSED SHIPYARD AT
MAHUVA BANDAR, BHAVNAGAR,GUJARAT.
IMPLEMENTATION SCHEDULE
Particulars Commencement Completion
Land Acquisition Aug, 2009 Oct, 2009
Site/CRZ/NOC from SPCB Oct, 2009 Jan, 2010
Dredging & Reclamation Works Jan, 2010 May, 2011
Detailed Design Jan, 2010 Jun, 2010
Fabrication Sheds Mar, 2010 Dec, 2010
Cranes, Machinery, Equipments Dec, 2009 Mar, 2011
Outfitting Sheds May, 2010 Mar, 2011
Building Dock/Slipway/Outfitting
Jetty/Berths
Mar, 2010 Jun, 2011
Administration Blocks & Other
Sheds
Jan, 2010 Dec, 2010

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PROPOSED SHIPYARD AT
MAHUVA BANDAR, BHAVNAGAR,GUJARAT.
VESSELS PLANNED FOR BUILDING
S.N. DWT TYPE
Length Beam Tonnes
1 170.00 m. 25.50 m. 25,000 Handy Multi-Purpose
2 177.00 m. 30.00 m. 35,000 Handy Bulk
3 185.00 m. 32.26 m. 45,000 Handymax Bulk
4 190.00 m. 32.26 m. 54,000 Handymax Bulk
5 220.00 m. 32.26 m. 65,000 Panamax Bulk
6 240.00 m. 32.26 m. 75,000 Panamax Bulk
7 222.00 m. 36.92 m. 93,000 Post-Panamax Bulk
8 250.00 m. 44.00 m. 1,15,000 Aframax Tanker
9 270.00 m. 40.00 m. 65,000 5600 TEUS Container
10 Jack Up Drill Rigs
11 FPSO
12 Semi-Submersible Rigs

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PROPOSED SHIPYARD AT
MAHUWA BANDAR, BHAVNAGAR,GUJARAT.
AREA REQUIREMENTS
TOTAL : 400 ACRES
Description
Area
Requirement
in Acres
Main Production Units
Marine Facilities : Docks/Berths/Quays
Reserved for Future Expansions
Ship Repair Workshop Units
Ancillary Storage Areas/Buildings/Amenities
Roadways/Walkways/Clear Spaces
Green Areas/Parks
Grand Blocks/Blocks/Units Buffer Storage
Staff Quarters & Amenities
Recreation/Shopping/Sports Facility/ School
100
40
25
15
60
30
90
10
15
15

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PROPOSED SHIPYARD AT
MAHUWA BANDAR, BHAVNAGAR,GUJARAT.
SHIPBUILDING PROCESSES

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PROPOSED SHIPYARD AT
MAHUVA BANDAR, BHAVNAGAR,GUJARAT.
PROJECT BENEFITS
1. Direct employment of approx. 3,000 persons in the shipyard.
2. Indirect employment generation for additional 30,000 persons.
3. Company to build Housing for staff , School, Hospital and other related
amenities as per the requirements.
4. Bharati to set up Ship Building Training Institute for training
manpower.Technical skills of Inhabitants will be upgraded as
shipbuilding is a highly technical work.
5. Shipbuilding Training Institute to enable people of the entire region to
acquire shipbuilding skills.
6. Entire surrounding areas will be benefited due to direct employment by
Bharati and high employment generation in ancillary/services
industries.
7. Development of surrounding areas due to development of infrastructure
and opportunities for employment.
8. Standards of living, educational background and skills of local people to
improve due to induced development in the region.

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INDIAN SHIPBUILDING
INDUSTRY

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RATIONALE FOR INVESTMENT IN
SHIP BUILDING INDUSTRY
• Largest generation of employment per capita of
investment; creates infrastructure.
• Largest generation of indirect employment. For every 1
person employed in a shipyard, indirect employment
generation for 10 persons in ancillary and support
industries.
• Called a Sun Rise Industry. Vital for industrial
development of a nation. Examples : Japan, South
Korea, PRC.
• Huge potential for investments in engineering
industries as the supply chain can be developed within
the country.
• Requires skilled, semi-skilled and unskilled work force.
Improves the technical qualifications of the work force.

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PRESENT STATUS OF INDIAN SHIPBUILDING
• 8 large public sector shipyards, few large private sector
yards and other smaller yards.
• Very few new shipyards announced due to
• Heavy capital investment
• Long gestation period
• Government approvals through various agencies
• Multiple taxes including Excise duty, VAT, Service
tax, Customs duty, Income-tax, Octroi, etc.
• Cost disadvantage vis-à-vis other shipbuilding
nations
• Investment plans of Rs. 18,500 crores announced.
• Supply chain and indigenisation not developed.

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COMPARATIVE DISADVANTAGE TO INDIAN
SHIP BUILDING INDUSTRIES
Sector
China Korea China Korea
Differential Impact of Statutory Levies
CD, ED, VAT & Octroi 8.30% 8.30% 2.91% 2.91%
Service Tax 1.48% 1.48% 1.48% 1.48%
Corporate Tax 1.40% - 1.40% -
Cost Differential on Account of Financial Charges
Charges towards Bank Guarantees 0.86% 0.86% 0.86% 0.86%
Interest on Working Capital 2.60% 1.60% 2.60% 1.60%
Interest on Capital Expenditure 0.74% 0.74% 0.74% 0.74%
Insurance Charges 0.40% 0.40% 0.40% 0.40%
Cost Differential on account of Import Dependence
Sea Freight differentials 3.90% 4.50% 3.90% 4.50%
Clearing & Forwarding 0.30% 0.90% 0.30% 0.90%
Other Costs due to External Factors
Bulk purchase discounts on purchase of inputs 3.25% 6.50% 3.25% 6.50%
Domestic Sale Export Sale

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POLICY SUPPORT FOR SHIP BUILDING
IN CHINA
• Export buyers’ credit to overseas buyers at nominal rate of 2.7%.
• Export sellers’ credit to shipyards at nominal rate of 2.7%.
• 17% VAT refund on export of ships as well as domestic sales.
• Debt Guarantee schemes offered in some provinces.
• Provides subsidy on inland sailing ships .
• Sovereign Refund Guarantees provided to specific class of ships.
• Customs duty rebate on imported inputs to shipbuilding.
• VAT refund on domestic inputs to shipbuilding.
• Accelerated depreciation allowed to shipyards.
• Exemption from Enterprise Income Tax equivalent to corporate tax is
offered by the Central and Provincial governments.
• Ploughing back of tax proceeds into creation of infrastructure for
shipyard zones.

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POLICY SUPPORT REQUIRED FOR INDIAN
SHIP BUILDING INDUSTRIES
• Single Window clearance – Fast track clearance for shipyard
projects (Site/CRZ clearance & NOC from SPCB in stipulated time
frame).
• Infrastructure Status / Subsidy – To negate the impact of taxes
and other levies.
• Additional Benefits to be provided for R & D.
• Setting up of training institutes for developing higher shipbuilding
skills.
• Development of ancillary industries and efficient supply chain
management system.
• Production of shipbuilding quality steel indigenously at
competitive international prices.
• Duty concessions on shipbuilding steel.

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POLICY SUPPORT REQUIRED FOR INDIAN
SHIP BUILDING INDUSTRIES
• Establishment of National Co-ordination Committee to implement
and monitor development of shipyards, ancillary industries & supply
chain management system.
• Central agency for industry representation before government
agencies for various concessions / subsidies / tax exemptions, etc.
• Co-operation between various shipyards and training institutes for
development & transfer of technology and R & D work.
• Development of resources (human, technical, manufacturing, supply
chain, etc.) required for large scale shipbuilding.
• To draw up MASTER IMPLEMENTATION PLAN to
• Increase GLOBAL shipbuilding market share from present 1.13%
to 5% in next 3 years, 10% in next 7 years and 15% by 2020.
• Construction of very sophisticated vessels like Rigs, FPSO,
passenger vessels, offshore structures, LNG carriers, etc.

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SUPPORT FROM GOVERNMENT FOR DEVELOPMENT OF
SHIPYARD AT MAHUVA BANDAR
• In-principle approval for the Shipyard Project.
• Advance possession of GMB and Revenue land for the
shipyard.
• NOCs for purchase of private land for the development of
shipyard.
• Fast track clearance at State Government and Central
Government levels (Site/CRZ Clearance and NOC from
State Pollution Control Board).
• Facilitation of Permissions/NOCs at local levels.
• Support for setting up Sector Specific SEZ Shipyard.
• Development of basic infrastructure like connecting
roads, supply of required water and electricity for the
shipyard.

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