Indian shipyard to resume operations after emerging from bankruptcy

India's Pipavav Shipyard is scheduled to resume its business operations under a new management team and after emerging from bankruptcy.

The yard's first project after reopening will be the repair of an Indian Coast Guard vessel. Also, discussions with an undisclosed shipping company are ongoing with the aim of finalising contracts for the construction of new large bulk carriers.

Pipavav Shipyard is now majority co-owned by Mumbai-based Swan Energy through a special purpose vehicle (SPV), which acquired the shipyard.

The company was established in 1997 and eventually became one of India's largest privately owned shipbuilders. A debt restructuring program saw the yard being acquired by local conglomerate the Reliance Group in 2016.

The shipyard then operated under the name Reliance Naval and Engineering (RNaval). However, it incurred debts amounting to US$1.2 billion, forcing its lenders to initiate bankruptcy proceedings in 2019.

With operations at the yard now set to resume, the new management is focusing its operations on restoring the existing facilities. The works will also include dredging of the adjacent channel to allow opening of the drydock gate.