Mangaluru yard of Bharathi Shipyard in fear of closure

Mangaluru, Sep 5: With the only large-scale ship manufacturing unit in Dakshina Kananda, the Mangaluru yard of Bharathi Shipyard reeling under a huge loss, the unit is facing the prospect of imminent closure, leaving thousands of employees anxious over their jobs. The yard is located at Kudroli West, about 7.5 kilometers south of New Mangalore Port.

The company which solely depends on orders for manufacturing ships is in financial crisis due to the economic slump in European countries, it is learnt. As the business of manufacturing ships commercially is a global-wide business, this business is affected when economic variations occur in other parts of the world.

At a time when Bharathi Shipyard company is facing economic crisis, it is essential that the governments come forward and save the company.

When Europe was under severe economic crisis in 2010-11, banks in European countries stopped providing loans to companies for purchasing ships. As a result, European companies cancelled their orders to manufacture ships.

In 2012, around 62 ship manufacturing orders had been handed to Bharathi Shipyard by various countries out of which, around 29 were cancelled due to different reasons. The cancellation of several orders inevitably caused huge losses for Bharathi Shipyard, which has reached the extent of the company facing closure.

Facing huge losses, the company was unable to pay the employees their salaries, which in turn has left the company with shortage of employees. Out of the total 1,200 employees, only about 150 have remained under employment. Out of 140 engineers, only about 90 have remained in the company.

General Manager of Bharathi Shipyard Commodore Valentine Sequeira said that in the face of financial crisis, the establishment could be salvaged if the state government responded favourably. If this happens, the livelihood of 6,000 persons employed directly or indirectly can be restored, he said.