India’s government company Majgaon Dock Shipbuilders Limited (MDL) is gaining control over Sri Lanka’s Colombo Dockyard PLC in a US $ 52.96 million deal. This is a step that will prevent China’s growing influence in the Indian Ocean. It will also expand the maritime trade of India. This is the first international deal of this company.
The company has invested capital in this acquisition and bought shares of Japan’s Onomichi Dockyard Company Limited. This Japanese company had a 51% stake in it. But now the Magicity Stek has come to the company of India. The Government of India has taken this big step due to the exit of the Japanese firm and Sri Lanka’s dockyard being in the financial crisis.
Why is this deal so special?
Colombo Dockyard is the largest ship -making company in Sri Lanka. It is located near some of the world’s most busy shipping lanes. The yard has been seen as a gift in regional maritime competition for a long time with its abilities and location. Officials said that the control of the Indian company from this deal will revive the control dockyard. In addition, ship construction and repair in South Asia will also shape the ecosystem.
MDL benefit from this step
The move will allow MDL to transfer parts of its repair and new construction order pipeline to Sri Lankan feature, making the raw raw to rapidly rapidly with industrial and design unlock between the two yards.
SMD Captain Jagmohan of MDL said in the Economic Times report that this step will be set up as a main player in South Asia and laying the foundation as a global shipyard. The Sri Lankan government had allegedly sought Japanese assistance to save the yard, but when it failed, Bhatar was asked to bring a strategic investor, after which Majgaon Dock came up as the top contender due to his strength and deep financial base.
Columbon Dockyard will become a subsidiary of MDL
Now after this deal, Colombo Docyard PLC Majhgaon will become a full subsidiary of dock shipbuilders. With which India will not only get a shipyard, but a leading strategic post will be found in an area where the controversy over marine control is increasing.