Welcome back to India Defence Online...If you haven't done so yet, subscribe to the RSS feed as it will save you a lot of time. Thanks for following the site!
The private shipyards of India have started eyeing the defence sector for some potential business opportunities in the face of the global meltdown.
Currently, major Indian shipyards like ABG Shipyard, Pipayay Shipyard and Bharati Shipyard are tying up with international firms to tap the $1.8 billion allotted for shipping in the defence sector. The private shipyards are targeting the defence sector as an independent business unit and aiming to build up volumes by participating in the bidding process of tenders floated by the Coast Guard and Indian Navy.
Another cause for concern for the private sector shipyards has been the cancellation of orders mainly in the dry bulk vessel segment which is averaging 10 to 15 per cent of the global order books.
Bharati Shipyard, one of the major private sector shipyards which has built vessels for the Indian Navy in the past, has tied-up with Rolls Royce to build ships for the Coast Guard. Other international firms like Yanmer Marine and Wartsila Diesel are also being approached by Indian firms for tie-ups.
Other Indian private players like ABG Shipyard and Pipayay Shipyard aim to bag orders from the Navy and Coast Guard due to their huge requirements. ABG Shipyard is already executing defence orders worth $120 million while Pipayay Shipyard plans to create weapon-oriented and customized vessels for the Navy and Coast Guard.
In a new proposal to the Indian government, modern and smaller-size vessels required by the Coast Guard and Indian Navy will be offered to be built by private shipyards while public sector shipyards would build strategic & large vessels required by the defence sector.
Another reason for the proposal has been the restriction of naval orders to shipyards under the Defence Ministry. The apparent lack of ship-building capacity in the state-owned shipyards like Mazagon Dock and Garden Reach Shipbuilders has already made the Indian Navy and Coast Guard suffer. Added to that is the fact that these shipyards are over-booked and are already working on full capacity leaving no scope for immediate and potential vessels needed by the country’s defence forces.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
