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Defence Ministry’s Rs 13,500 Crore Warship Order will Throw up a Major Opportunity for Private Sector

The Navy is looking for a power packed new ship that has surface warfare capabilities, high endurance at sea and a strong air defence system on board
NEW DELHI: The defence ministry is set to clear a Rs 13,500 crore warship acquisition that will throw up a major opportunity for private shipyards to bag the contract, given that most government owned yards are currently running at full capacity.
The Navy’s proposal to acquire next generation missiles vessels (NGMV) – six of the missile boats are needed for the fleet – is likely to get a go ahead from the high powered defence acquisition council (DAC) shortly, with private shipyards L&T and Pipavav in the fray, besides defence ministry owned yards.
The Navy is looking for a power packed new ship that has surface warfare capabilities, a low radar signature, high endurance at sea and a strong air defence system on board. While tenders are expected to be issued shortly after the defence ministry clearance, the Navy had earlier put a condition that only those yards yards that have experience in building ships of this size in the past and have a license to construct warships will be eligible.
In case the Navy sticks to this stand under the `Buy Indian’ purchase , several major private yards, including those that have recently obtained warship building licenses will not be able to take part in the competition. Sources have told ET that an initial request for information sent by the Navy generated strong response.
While the procurement meets the Rs 10,000 crore threshold that qualifies projects for the new `strategic partnership’ model, it may not be processed as such given that the defence ministry is months away from finalizing details. Under the strategic partnership model that the defence ministry is finalising a single private sector company will be selected for a particular manufacturing capability – be it warships, submarines or land systems.
Defence Minister Manohar Parrikar had told ET that ongoing projects – like the NGMV – would be processed under older rules that did not include a Strategic Partner and that only new contracts on a case by case basis will follow the new model.
For the NCMV, the Navy has not specified displacement but has said that it wants a single Hull Form warship that can travel at over 35 knots and has an endurance of 10 days at sea. The ship should also carry a minimum of 8 surface to surface missiles, be fitted with a Point Defence Missile System (PDMS) and possess a medium range gun with ‘stealth features’ having range a range of over 15 km.


Source: Defense News

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