NEW DELHI: India’s oldest shipyard, Hindustan Shipyard Limited (HSL), is experiencing a significant turnaround following decades of financial challenges. Historically burdened by substantial losses, the company recorded a negative net worth, peaking at Rs 1,023 crore during the fiscal year 2014-15. Despite receiving government grants totalling Rs 452.68 crore in FY 2010-11 and further infrastructure support of Rs 457.36 crore in FY 2011-12, financial stability remained elusive, worsened by the impact of the COVID-19 pandemic which saw its negative net worth fall to Rs 595.16 crore in 2020.
However, recent strategic shifts initiated under Commodore Hemant Khatri, the current Chairman and Managing Director, have resulted in significant improvements. A series of measures aimed at enhancing financial discipline, operational efficiency, and resolving legacy liabilities has enabled HSL to recover significantly, with turnover increasing from Rs 478 crore in FY 2020-21 to Rs 1,413 crore in FY 2023-24.
The financial year 2024-25 marked a critical turning point, with provisional revenues reaching Rs 1,586 crore and a Profit Before Tax (PBT) of Rs 295 crore, resulting in a positive net worth for the first time in over four decades. This positions the company to qualify for the Mini Ratna status, an important government designation granted to financially stable public-sector entities, reflecting a markedly improved outlook.
Alongside its financial recovery, HSL has notably advanced its technological and operational capabilities. A recent key development has been completing Diving System Trials on the Diving Support Vessel (DSV) “Nistar”. These tests included extensive manned and unmanned air diving operations conducted at various depths, alongside successful trials involving Observation Remotely Operated Vehicles (OROVs). Further saturation diving trials are anticipated to confirm the vessel’s capability for advanced deep-sea missions.
The Nistar, HSL’s flagship project, is an 8,500-ton vessel measuring 120 metres. It features a Dynamic Positioning System (DP-II) designed for accurate positioning in adverse maritime conditions, a six-man decompression chamber, and a Submersible Decompression Chamber (diving bell) deployed through a moon pool. The vessel also houses advanced equipment, such as two underwater remotely operated vehicles (ROVs) with individual launch and recovery systems and a deep submergence rescue vehicle (DSRV), which is essential for submarine rescue operations.
Additionally, it includes a Self-Propelled Hyperbaric Life Boat (SPHL) and a dedicated helicopter deck for operations involving helicopters such as the Advanced Light Helicopter (ALH)/Naval Utility Helicopter (NUH).
HSL achieved over 80% indigenous content on the Nistar project, working with more than 120 Micro, Small, and Medium Enterprises (MSME) vendors.