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Amid Chinese language fishing in Indian waters, Mazagon Dock buys controlling stake in Colombo Shipyard, ETCFO
New Delhi: In a strategic acquisition that can considerably increase its manufacturing capability and take it on the trail of turning into a world participant, India’s largest shipyard, Mazagon Dock Shipbuilders Restricted (MDL), is shopping for a controlling stake in Sri Lanka’s largest shipbuilder, situated within the port of Colombo.
The controlling stake in Colombo Dockyard PLC (CDPLC), Sri Lanka’s largest and most established shipyard, is being acquired for $52.96 million, with the Indian yard taking on as the bulk shareholder.
The acquisition won’t simply give the Indian yard a bigger footprint however can even assist restrict the enlargement of Chinese language entities within the neighbourhood. The yard is very very important given its location. It’s near a number of the busiest transport lanes on the earth.
“With CDPLC’s strategic location, confirmed capabilities, and robust regional presence, this step will place MDL as a key participant in South Asia and lay the inspiration for our emergence as a world shipyard,” mentioned MDL CMD Capt Jagmohan.
Sources mentioned the Sri Lankan yard is a loss-making entity however has nice potential to emerge as a powerful participant within the area, given its historical past, technical functionality and plentiful land for enlargement. The dockyard has been in dire straits for a while and initially it had sought assist from the Japanese authorities as 51% is owned by Onomichi Dockyard. Nonetheless, neither Japan or the Sri Lankan authorities may present monetary aid.
In November 2024, Onomichi Dockyard exited from the entity and the Sri Lankan authorities requested India to encourage Indian traders to take over. The scenario was dire as a default would have introduced monetary misery and uncertainty for staff employed in Colombo Dockyard. After due course of, MDL was shortlisted, given its prowess in shipbuilding in addition to monetary power. MDL officers mentioned that topic to customary regulatory approvals and shutting circumstances, CDPLC will develop into a subsidiary of MDL.
