HSL bulk carrier may be sold to Navy

The bulk carrier that is lying idle at the Hindustan Shipyard Limited in Visakhapatnam.-PHOTO: C.V. SUBRAHMANYAM

Hindustan Shipyard Limited has launched an exercise to explore the possibility of selling a bulk carrier under construction at the yard to the Indian Navy with the Chennai-based Goodearth Maritime Limited failing to settle its dues for nearly a year after placing the order under Diamond Series of 53,000 DWT bulk carriers.

The bulk carrier, on which HSL has completed 70 per cent of the work, is lying idle at the outfitting jetty blocking the space for undertaking other activities. GML, for one reason or the other, has defaulted in payment of nearly Rs.20 crore. Despite several reminders, they have not cleared the dues.

Now by involving GML, HSL is exploring selling the bulk carrier to the Navy. The latter has also evinced keen interest. “It is at initial stage as we have started tripartite negotiations,” HSL Chairman and Managing Director Rear Admiral N.K. Mishra told

The Hindu .

HSL completed the delivery of four bulk carriers of 30,000 DWT under Trader Series in 2009 for GML. Later, it signed an MoU with GML under Diamond Series of which the last one – DNV classed double bottomed bulk carrier m.v. Good Pride was delivered in 2010 as per the stipulations made by Indian Registrar of Shipping and American Bureau of Shipping. HSL and GML subsequently dropped signing agreement for construction of the sixth bulker.

HSL, which is facing severe working capital crunch, is keen on floating out the bulker under construction as fast as possible. Sources in HSL said once they get funds, they could deliver the vessel within three to four months.

The shipyard, which was transferred to the Ministry of Defence in 2010 from Ministry of Shipping at present, has an order book of Rs.215 crore – mostly for ship repairs.

It is confident of making a turnaround once the long awaited orders for Landing Platform Docks, Strategic Operating Vessels and Fleet Support Ships, all at a total value of around Rs.25,000 crore are placed in next few months.

It is lying idle at the outfitting jetty as GML fails to settle its dues