India's Cochin Shipyard has been given government approval to take over compatriot yard Hooghly Dock & Port Engineers.
It will focus on upgrading and modernising infrastructure at sites in Salkia and Nazirgunge in Kolkata.
Cochin will have a 76% stake, with Hooghly having the rest.
The plan is to make barges at Hooghly.
TradeWinds has previously reported that Cochin will spend its $229m IPO cash on four new shipbuilding and repair yards.
The plants will be established in Andaman and Nicobar, Gujarat, Kolkata and Mumbai.
Cochin's chairman Madhu Nair has promised INR 31bn ($477m) of investment over the next five years.
The money will go towards a new large drydock and the setting up of a new international shiprepair facility.
