ABG Shipyard Limited is a

shipbuilding Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to befor ...

company headquartered in

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...

Maharashtra Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...

,India.

History

ABG Shipyard Ltd is a part of the ABG Group of companies with diversified business interests. Established in 1985, it is headquartered in

. It has shipbuilding operations in

Surat Surat is a city in the western Indian state of Gujarat. The word Surat literally means ''face'' in Gujarati and Hindi. Located on the banks of the river Tapti near its confluence with the Arabian Sea, it used to be a large seaport. It is now ...

and

Dahej Dahej is a cargo port situated on the South-west coast of Gujarat, India in Bharuch district. There is 17.5 million tonnes per year capacity LNG terminal operated by Petronet in Dahej. Port Information General The Port of Dahej is located in t ...

in Gujarat. Following its acquisition of

Western India Shipyard Western India Shipyard Limited is a composite ship repair company based in Goa, India. History Western India Shipyard Limited was registered in 1993 and has a dedicated composite ship repair yard at Mormugao Harbour at Goa under a 25-year licen ...

Limited in October 2010, it operates a ship repair unit in

Goa Goa () is a state on the southwestern coast of India within the Konkan region, geographically separated from the Deccan highlands by the Western Ghats. It is located between the Indian states of Maharashtra to the north and Karnataka to the ...

which is the largest ship maintenance facility in India. ABG became one of the largest private ship building companies in India with a capacity to manufacture vessels up to 20 tonnes in weight. In January 2019, a forensic audit by E&Y revealed that ABG had defrauded a 28-member consortium of bankers to the tune of Rs 22000 crores. Following this in November 2019, State bank of India petitioned CBI to conduct an investigation. CBI asked the bank to investigate at their level to check for involvement of bank insiders which was ruled out subsequently. Post this in September 2020 SBI filed a fresh complaint seeking investigation in to the role of public servants and other persons in the fraud. In February 2022, a look out circular was issued against the ABG former Chairman Rishi Agarwal and others in the case.

Products

''ABG Shipyard Ltd'' builds a range of commercial vessels. These include self-loading and self-discharging

bulk carrier A bulk carrier or bulker is a merchant ship specially designed to transport unpackaged bulk cargo — such as grains, coal, ore, steel coils, and cement — in its cargo holds. Since the first specialized bulk carrier was built in 1852, econom ...

container ship A container ship (also called boxship or spelled containership) is a cargo ship that carries all of its load in truck-size intermodal containers, in a technique called containerization. Container ships are a common means of commercial intermodal ...

floating crane Floating may refer to: * a type of dental work performed on horse teeth * use of an isolation tank * the guitar-playing technique where chords are sustained rather than scratched * ''Floating'' (play), by Hugh Hughes * Floating (psychological phe ...

s, split barges, anchor handling tugs,

dynamic positioning Dynamic positioning (DP) is a computer-controlled system to automatically maintain a vessel's position and heading by using its own propellers and thrusters. Position reference sensors, combined with wind sensors, motion sensors and gyrocompass ...

ships,

offshore supply vessel A platform supply vessel (PSV) is a ship specially designed to supply offshore oil and gas platforms. These ships range from in length and accomplish a variety of tasks. The primary function for most of these vessels is logistic support and tr ...

s and

diving support vessel A diving support vessel is a ship that is used as a floating base for professional diving projects. Basic requirements are the ability to keep station accurately and reliably throughout a diving operation, often in close proximity to drilling or ...

s. ABG Shipyard Ltd was granted clearance from the

Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...

to build warships and various other vessels for the

Indian Navy The Indian Navy is the maritime branch of the Indian Armed Forces. The President of India is the Supreme Commander of the Indian Navy. The Chief of Naval Staff, a four-star admiral, commands the navy. As a blue-water navy, it operates sig ...

. It was the second corporate shipyard to receive this licence after Pipavav Shipyard. In 2004, it was awarded a contract to build pollution-control vessels for the

Indian Coast Guard The Indian Coast Guard (ICG) is a maritime law enforcement and search and rescue agency of India with jurisdiction over its territorial waters including its contiguous zone and exclusive economic zone. The Indian Coast Guard was formally esta ...

. In 2009, the Shipyard was selected to build 11 high-speed water jet propelled

interceptors An interceptor aircraft, or simply interceptor, is a type of fighter aircraft designed specifically for the defensive interception role against an attacking enemy aircraft, particularly bombers and reconnaissance aircraft. Aircraft that are c ...

for the Coast Guard. In June 2011, ABG Shipyard Ltd was awarded a deal to build two cadet training ships for the

. In January 2012, it won an order of 5 billion order from

Shipping Corporation of India The Shipping Corporation of India (SCI) is a government corporation that operates and manages vessels servicing both national and international lines. It is under the ownership of Ministry of Shipping, Government of India, with its headquarte ...

taking its order book to about . In July 2017, the company agreed to file for insolvency.

Bank Fraud

Despite having reputation and success in the ship building industry, in 2012 the finances of ABG started dwindling which was later discovered by a forensic audit by E&Y initiated by SBI. During the audit it was alleged that the top management of the company was involved in diversion of funds causing criminal breach of trust with an intent to use the banks funds for personal gains possibly to tax havens. SBI stated that funds were used to pay other lenders and get letters of credit. Earlier in October 2016, Standard Chartered bank filed a criminal complaint with Economic Offences Wing in Maharashtra for cheating them of Rs 200 crore loan as they failed to repay the short-term loan they sought from the bank in April 2012.

Peers

Modest Infrastructure Ltd Modest Infrastructure Ltd is a shipbuilding company in Bhavnagar, Gujarat, India. Modest Infrastructure Limited established in the year 1986 as Shipping Agents and subsequently expanded its activities to develop as Ship Owners, Ship Managers, Ch ...

Bharati Shipyard Limited Bharati Defence and Infrastructure Limited (formerly Bharati Shipyard Limited) is one of the largest shipbuilding companies in India. History Bharati Shipyard Limited (BSL) was founded in 1973 in Ratnagiri, Maharashtra by Prakash C. Kapoor an ...

Mazagon Dock Limited Mazagon Dock Shipbuilders Limited (MDL) (IAST: ''Majhagānv Dawk Limiṭeḍ''), formerly called Mazagon Dock Limited, is a shipyard situated in Mazagaon, Mumbai. It manufactures warships and submarines for the Indian Navy and offshore platform ...

References

External links