Navratna PSU Garden Reach Shipbuilders & Engineers and Yantra India have announced projects aggregating to Rs 2,670 crore and Rs 750 crore, respectively, for expansion of shipbuilding and defence manufacturing capabilities in West Bengal. Together, these projects comprise an investment aggregating to Rs 3,420 crore.
GRSE: Project details
Under the scope of work, GRSE will undertake three manufacturing and infrastructure projects in West Bengal with a combined investment of Rs 2,670 crore. The largest project is at the Raichak facility, which comprises an investment of Rs 2,500 crore for the development of a shipbuilding hub.
The project has been signed for the purpose of capacity expansion and construction of commercial vehicles. The facility will enable GRSE to build warships up to 200 metres and commercial vehicles up to 60,000 DWT (deadweight tonnage).
The PSU will also invest Rs 100 crore to rejuvenate the Timber pond facility at Shalimar, Howrah, for shipbuilding, repairs, and related construction work. The smallest project will include an investment of Rs 70 crore at the Damodar facility in Kidderpore for vessel repair and construction of electric ferries and other small craft, the PSU said in its regulatory filing.
“The three projects of GRSE mark a significant step towards enhancing the shipyard’s manufacturing capacity and infrastructure, enabling the company to meet the growing requirements of the Maritime Forces and other defence and maritime stakeholders,” the company said in its exchange filing.
YIL: Project details
Yantra India is investing over Rs 750 crore in two of its metal and steel factory facilities located in Ishapore, West Bengal. The defence PSU will allocate Rs 473.38 crore to a radial forging plant, which will manufacture super alloy forgings, aerial bomb tubes, ordnance hardware, railway axles, and nuclear reactor components.
Also, the PSU will invest Rs 277.59 crore towards the development of a new plant, which will produce gun barrels, ammunition components, and heavy defence forgings, it added in its statement.
“With Industry 4.0 and energy-efficient technologies, the facilities will enhance high-end manufacturing, reduce import dependence and support the defence, railway and strategic sectors,” the company said.
GRSE-YIL: Business impact
Both these PSUs operate under the Ministry of Defence and are undertaking projects in West Bengal to support industrial development in the state, as the projects will help with employment generation and increased opportunities for ancillary industries, particularly MSMEs, GRSE added in its press release.
The projects were inaugurated in the presence of India’s Defence Minister, Rajnath Singh, and West Bengal’s Chief Minister, Suvendu Adhikari
GRSE: Share price
Following the inaugural, GRSE’s share price advanced 1% in Monday’s intraday trade. Over the past one month, its stock has delivered a return of 1.5%, while over the past six months, its share price has increased by around 8%.