Artson Engineering Ltd, a subsidiary of Tata Projects Ltd, will set up a passenger shipbuilding unit in Kochi in association with the state public sector Malabar Cements Ltd.
A memorandum of understanding in this regard was signed between the two companies in Kochi on Saturday.
Speaking to reporters on the sidelines of the Invest Kerala Global Summit, Shashank Jha, CEO of Artson Engineering, said shipbuilding is one of the most profitable enterprises. According to him, an investment of ₹1 will fetch a return of ₹8 in shipbuilding.
The new venture will focus on medium-sized vessels of 100 tonne catering to the needs of the opportunities in the inland water transportation sector in the country. The Pradhan Mantri Gatishakthi Project is expected to increase the demand for the inland water transport vessels.
Chandra Bose J, Managing Director of Malabar Cements Ltd, said the venture will come up in seven acres of land taken on a long lease by MCL from the Kochi Port. The venture is expected to create direct employment opportunities for 300 persons.