Under the agreement signed on Thursday, CSL shall assist the administration to set up a ship repair ecosystem at Andaman & Nicobar islands.
The Cochin Shipyard Ltd (CSL) has entered into an agreement with the Andaman & Nicobar administration to commence its operations at the marine dockyard at Port Blair, a facility that is currently being operated directly by the island administration.
Under the agreement signed on Thursday, CSL shall assist the administration to set up a ship repair ecosystem at Andaman & Nicobar islands. It shall associate in augmentation and modernisation of the facility and also focus efforts towards skill development in the islands in consultation with the administration and technical Institutions located in the islands. A CSL release said it will be entitled to a management fee of Rs 15 crore per annum.
A profit share of 7.5 percent of PAT shall be payable by CSL to the administration for profit generated by CSL through providing ship repair services at the marine dockyard facility, according to the release.