The shipbuilding centre at Ponnani Port is scheduled to become operational in August as Hyderabad-based Travancore Precision Components finalised an agreement with the Kerala government to establish the facility on 29 acres within the port. Shipbuilding operations will be managed by its subsidiary Blue Gen Marine. The project is part of the state's efforts to expand maritime industry infrastructure. The company secured its first major international order before the yard begins operation, obtaining a Rs two billion (bn) contract from a Singapore-based firm to build two electric tugboats. The vessels will be powered by 4,200 kWh battery systems and the yard will also manufacture offshore support vessels and advanced fishing boats designed for coastal and marine operations. The award underlines early export confidence in the facility's capabilities. In the first phase the facility will be capable of building vessels up to 50 m in length, with plans to expand capacity in a second phase to construct ships measuring up to 120 m. Preparatory work for the public-private partnership is progressing on schedule, the deputy director of ports at the Kerala Maritime Board said, adding that the agreement with the construction company was signed in June. He noted that only a few minor issues remain, including removal of illegal sheds erected by fishermen, and that the district collector has been asked to take action. The state government will provide annual operational support of Rs 15 million (mn) to the shipbuilder to promote employment generation and related industrial development and will lease the land to the company at an annual rent of Rs 2.5 million (mn), with a five per cent increase every year. In return the company will share a portion of its revenue with the government, paying 0.5 per cent of total order value during the first two years of operation, 0.75 per cent for the two years after that and 1.5 per cent thereafter. Officials expect the first vessel to be completed in 2027.