A major partnership is going to take place between two shipbuilding companies of India and Sri Lanka. Mazagon Dock Shipbuilders Limited (MDL) has announced to buy a majority stake in Colombo Dockyard PLC (CDPLC). MDL is going to buy shares of CDPLC for $53 million (Rs 439 crore).This deal between MDL and CDPLC can be a cause of concern for China. China had leased Sri Lanka’s Hambantota port to gain a foothold in the Indian Ocean.
Let us tell you that CDPLC is counted among the best shipbuilding industries. This company has built tankers, patrol ships and cable laying ships for many African countries including Japan, Norway, France, India, United Arab Emirates. But now the entry of Indian shipbuilding company in Sri Lanka can create problems for the Dragon. Talking about MDL, this company manufactures many types of ships including submarines. This is the first time that an Indian shipbuilding company has decided to buy the stake of another company outside the country.
Let us tell you that MDL will buy CDPLC shares in two different parts. Currently, most of the shares of CDPLC are with Onomich Dockyard Company Limited. In such a situation, MDL will buy some shares from Onomich. Along with this, CDPLC will also issue some new shares, which will go to MDL.