Row over Cochin port’s disinvestment move

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The Cochin Shipyard says it is aiming at a “major expansion” through gradual disinvestment, but some members of the parliament consultative committee on shipping see it as part of a move to privatise the shipyard.

The parliamentary consultative committee on shipping met here on Thursday under the chairmanship of shipping minister G.K. Vasan and discussed the plans by the Cochin Shipyard.

Mr Vasan said the vision document of his ministry, “Maritime Agenda 2010-2020,” aimed at having a well-developed shipbuilding and ship repair industry of international standards.

CMD of Cochin Shipyard, Commodore K. Subra-maniam, said fresh investment was essential for capacity augmentation in order to sustain the growth of ship repair and shipbuilding in future.

He elaborated on the Cochin Shipyard’s expansion plan of approximately Rs 1,500 crore, which includes a ship-repair centre, offshore fabrication facility and new dry dock capable of docking rigs, semi-submersibles.

Mr Subramaniam said the CSL was hoping to raise a part of the project cost by way of Initial Public Offering at the time of disinvestments by the Centre.

Meanwhile, A. Sampath MP, who is also a member of the consultative committee, issued a press release opposing the Cochin port’s disinvestment plan.

“Privatising Cochin port is like killing the goose that lays golden eggs, as the port has been profitable even when the global shipping industry is facing a major crisis.”

He also said that other members of the committee, Bibhu Prasad Tarai (CPI-Odisha) and Fransisco Sardinha (Congress-Goa), had given their dissent note on the move.