For the first time, US Navy Ship (USNS) Charles Drew arrived at L&T's Shipyard at Kattupalli, Chennai on Sunday for repairs and allied services, opening up a new avenue of services Indian firms can offer to global ship companies.
USNS Charles Drew will be at Kattupalli shipyard for a period of 11 days and undergo repairs in various areas.
Part of 'Make in India' and 'Aatmanirbharta in Defence', the initiative is likely to begin a multi-dollar business deals to be undertaken by India's major six shipyards along its coast stretching from the Bay of Bengal to the Arabian Sea.
The US Navy had awarded the first of its kind contract to L&T's Shipyard at Kattupalli for undertaking maintenance of the ship, indicating the new capabilities of Indian shipyards in the global ship repairing market.
"Indian shipyards offer wide ranging and cost-effective ship repair and maintenance services, using advanced maritime technology platforms," said the US Navy in a statement. Besides, India's initiative also assumes special significance in furthering the strategic partnership between India and the US. It marks the beginning of a new chapter for deeper engagements.
Currently, India has six major shipyards with turnover of nearly $2 billion. Apart from making ships, these establishments also have their own design house capable of making all kinds of state-of-the-art ships. In addition, 11 shipyards are also invovled in carrying out repair works for ships.
The global ship repairing market is expected to grow from $30.16 billion in 2020 to $39.04 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth is attributed to the companies looking for rearranging their operations after recovering the COVID-19 impact, which had led to restrictive containment measures and operational challenges.
(With inputs from IANS)