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L&T Shipbuilding earmarks Rs 1,500 cr for Kadipully project

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L&T will build 36 interceptor boats for the Indian Coast Guard by FY 13.

MUMBAI (PTI): Engineering major Larsen and Toubro (L&T)'s shipping arm L&T Shipbuilding has earmarked around Rs 1,500 crore to develop around 800 acres of land at Kadipully near Ennore in Chennai for expanding its vessel building capacity, a top company official said.

The Kadipully project, to make vessels primarily for defence, would be developed in phases and the first phase will start by mid-2011, the official said on condition of anonymity.

"This would be our second manufacturing facility after Hajira (in Gujarat). We plan to make large vessels in Kadipully which cannot be made in Hajira. The facility will cater mostly to the Indian Navy," he said.

L&T has acquired about 1,200 acres of land there, of which 800 acres would be used for shipbuilding activities. It would make vessels of 210 metres length and 46 metres width.

"We plan to do a soft launch by end-this year from Kadipully facility," he said.

On the company's order-book, he said the plan is to deliver eight commercial vessels and 36 interceptor boats for the Indian Coast Guard by FY 13.

Of these eight, one has already been delivered and the second one would be ready by the end of this year.

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