Mazagon Dock Shipbuilders Limited said it will weigh a bid for bankrupt shipbuilder Reliance Naval and Engineering Limited (BSE:533107) (RNAVAL) if it is available at a “reduced price” in a “distress sale”, Chairman and Managing Director Narayan Prasad said. “At the end of it, if they go in for an emergency sale at a very reduced price, we have not ruled out giving a bid for the yard because it is going to be a huge technology enabler and a capacity enhancer for me,” said Prasad. Asked why it did not participate in the invitation for expression of interest called by the resolution professional for RNAVAL, Prasad told BusinessLine: “It is one of the finest shipyards the country has in terms of infrastructure facilities; with the longest dry dock and two goliath cranes of very high capacity.

We had contemplated bidding in the beginning, possibly examine the feasibility, but we were little concerned about whether we would be able to bid for the price what it is there. When I look at the land parcel and the infrastructure facilities RNAVAL have, they also have a huge accompanying debt of some INR 40,000 crore. We will not be able to get into that, so we are just waiting”.

“Should there be a distress sale of the yard and United Shipbuilding Corporation and all those who are there don't participate in this and if it is offered to us at a later stage, we can have a look at it with a very positive frame of mind and explore it for future orders as my interactions with the shipyard has shown that it is a very good asset,” Prasad stated.