Bharati Shipyard on Tuesday said it has signed an agreement with Kolkata-based Apeejay Shipping to form a joint venture for setting up a shipbuilding yard along the eastern coast of the country.
"We expect that demand would grow and our new shipyard along the east coast is expected to partly fulfil it," Bharati Shipyard Managing Director V Kumar said.
The company informed the Bombay Stock Exchange that the 50:50 joint venture would be operational by 2008. The unit would also include ship-repairing facilities and would have capacity to build and repair vessels of all sizes.
The two parties are in the process of finalising the site of operation.
Last month, Bharati Shipyard and Apeejay Surendra Group had jointly proposed to develop a modern shipbuilding and ship repairing yards at Dhamara in Bhadrak district of Orissa.
The Orissa government was examining the proposal for shipbuilding and repairing yards along its 450-km long coastline, which would involve an investment of Rs 2,200 crore.
Shares of the company were trading at Rs 620, down 0.11 per cent in the morning trade at the BSE.