Rs.25,000 Cr Navy tender for pvt sector

Photo: Sagar Sandesh

[Editor: Pipavav Shipyard was the first corporate shipyard to be granted clearance to build warships and other vessels for the Indian Navy, though the initial licence limits, up to 5 ships per year. Moreover, since the  name of ABG Shipyward Ltd is involved, it would definitely have a positive rub-off effect on the share price of Western India Shipyard Ltd (Rs.1.88)]

NEW DELHI, Monday, September 15, 2014: Seeking to build capabilities of Indian private sector warship builders, the Defence Ministry has rejected the plea of a state-owned shipyard to participate in the Rs 25,000 crore project to construct four amphibious warfare vessels for the Indian Navy.

The Defence Ministry has decided that only private sector shipyards, including Pipavav, ABG and L and T, along with their foreign partners, would be allowed to take part in the Rs 25,000 crore project for building the four Landing Platform Docks, Navy sources told PTI here.

The Navy had issued tenders to these three private shipyards last year and decided to keep out Cochin Shipyard Limited (CSL), saying it was building the 40,000-tonne Indigenous Aircraft Carrier and it should focus on that major project only for the moment.

However, CSL approached former Defence Minister A K Antony through the Ministry of Shipping and the deal was put on hold.

Courtesy: Afternoon