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The Indian government has decided to set up a new commercial shipyard on the eastern coast of India, through the joint venture (public-private partnership) route. The strategic partner from the private sector will be selected through a competitive bidding process.
The Indian government has given an in-principle approval for creating a new shipyard to make up for Hindustan Shipyard’s transfer, from Shipping Ministry to Defence ministry, to enable the Navy to build military vessels. Therefore, the new shipyard will be of international standard and will meet the merchant shipping requirements of shipbuilding and ship repair.
According to sources, the government is currently scouting for a location for the new shipyard in the east coast, and the venture will require a total investment of about $800 million. The Indian Defence ministry has plans to fund the unit and make it better-equipped for increased defence production.
This decision is a result of the Indian Defence Ministry’s plan to take over the Hindustan Shipyard Ltd (HSL) in Vizag to use to build military vessels for the Indian Navy. This will significantly scale down the shipbuilding capacity in the public sector. Furthermore, a state-owned shipyard on the east coast is also imperative for India.
The transfer of the Hindustan shipyard Limited (HSL) to the Indian Defence Ministry has also been agreed upon by the Indian Shipping Ministry. According to Defence Ministry officials, HSL’s new role would be to build frigates, destroyers and submarines for the Indian Navy. The decline in the fleet of Indian Navy has led to the Indian government’s decision to build 100 warships over the next decade, and HSL will play a primary role in this exercise. HSL has already built around 150 ships and repaired over 1,800, as well as undertaking naval repairs since it was created.
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