ABG Shipyard Limited is a

shipbuilding Shipbuilding is the construction of ships and other Watercraft, floating vessels. In modern times, it normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation th ...

company headquartered in

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

Maharashtra Maharashtra () is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to th ...

, India.

History

ABG Shipyard Ltd is a part of the ABG Group of companies with diversified business interests. Established in 1985, as Magdalla Shipyard Pvt. Ltd., in May 1995 the company name was changed to ABG Shipyard Pvt. Ltd. after that the company went public and in June 1995 company name was changed to ABG Shipyard Ltd. it is headquartered in

. It has shipbuilding operations in

Surat Surat (Gujarati Language, Gujarati: ) is a city in the western Indian States and territories of India, state of Gujarat. The word Surat directly translates to ''face'' in Urdu, Gujarati language, Gujarati and Hindi. Located on the banks of t ...

and Dahej in Gujarat. Following its acquisition of Western India Shipyard 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 bound by 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 naval architecture, designed to transport unpackaged bulk cargo—such as Grain trade, grain, coal, ore, steel coils, and cement—in its cargo holds. Since the first specialized bulk carrie ...

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 ...

s, floating cranes, 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 gyrocompas ...

ships,

offshore supply vessel A platform supply vessel (PSV) is a ship specially designed to supply offshore oil and gas platforms and other offshore installations. They typically range from in length and are distinguished by the large open deck area used to store supplies ...

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 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...

to build warships and various other vessels for the

Indian Navy The Indian Navy (IN) (ISO 15919, ISO: ) is the Navy, maritime and Amphibious warfare, amphibious branch of the Indian Armed Forces. The President of India is the Supreme Commander of the Indian Navy. The Chief of the Naval Staff (India), Chief ...

. 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 of India, exclusive economic zone. It was st ...

. 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 cap ...

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 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 * Western India Shipyard * Bharati Shipyard Limited *

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

References

External links