India: Private Shipyards to Build Larger Naval Vessels ?

October 27, 2011

Given the rising demands of the Indian Navy and Coast Guard, the ministry of defence may allow private shipyards in the country to build warships and other naval vessels. This was revealed by MM Pallam Raju, the minister of state for defence in Kolkata on Tuesday.

According to sources, given the security scenario in the region, both the Navy and Coast Guard need new ships of various sizes with advanced technology. While the requirement is for 25-30 new naval vessels per year, the combined capacity of existing PSU shipyards is barely 6-7.

“There is a great demand for ships from the Navy and Coast Guard. Private shipyards are presently building smaller craft like patrol boats for coastal surveillance. There is a demand from these shipyards for orders to build larger naval vessels. This demand may be considered. This is when existing PSU shipyards will face a stiff competition. However, shipbuilding is a complex process and the existing PSU yards have the necessary expertise in building warships that the private shipyards may not possess. In the end, this expertise will help to keep them going,” Raju said after the launching of the country’s second Anti Submarine Warfare (ASW) corvette in the Kamorta Class or Project-28 from the Garden Reach Shipbuilders and Engineers (GRSE).

While announcing modernisation plans for GRSE that would enable it to build larger and more modern ships without cost and time overruns, Raju cautioned against competition from private shipyards.

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Source: indiatimes, October 27, 2011;