After removing the sick tag attached to it, Hindustan Shipyard Limited, a Ministry of Defence of Enterprise is all set to get orders worth Rs. 20,000 crore by year-end to put it on a sound-footing.
After a long tap, the premier shipbuilding yard achieved a profit after tax (PAT) of Rs. 20 crore during 2015-16. Though it has been incurring losses since 1981, except on four occasions it could post PAT in the range of Rs.1 crore to Rs.10 crore. “By increasing productivity and ensuring optimum utilisation of manpower and facilities, we could able to turnaround the company,” HSL Chairman and Managing Director Rear Admiral L.V. Sarat Babu said on Monday.
The Ministry of Defence has nominated HSL projects to construct five Fleet Support Ships with a total value of Rs. 9,000 crore to Rs. 10,000 crore, two special operational vessels (mini submarines) worth Rs. 4,000 crore to Rs. 5,000 crore and two Landing Platform Docks worth Rs. 5,000 crore to Rs. 6,000 crore
. Rear Admiral Sarat Babu told reporters that the orders would materialise by year-end or early 2018 and construction would be completed within five to 10 years improving the cash flow of HSL.
“We are confident of a bright future ahead,” he said.
Sufficient orders were on hand, he said, and added that they had vessels at various stages of construction/repairs with a total value of Rs. 1,200 crore.