India On Fast Track To Open Submarine Construction To Pvt Sector

lambu

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Prime Minister Manmohan Singh has setup a committee to study and fast-track India's delayed submarine programme. The committee has recommended to the Prime Minister of opening up construction of submarines to India's private sector. Each submarine costs close to Rs 8,000 crore to the government exchequer.

The committee is led by former Chairman of SAIL Dr. V. Krishnamurthy and has said that private sector investments should be invited as well as public-private partnership and joint ventures with government owned companies should be promoted.

The committee has said that if the private sector is invited in building submarines, the country's capacity to build submarines will increase and there will be no need for India to import submarines from other countries.
Submarine building contracts alone are valued at around Rs 50,000 crore for Indian companies like L&T and Pipavav Shipyard. India at present has 14 submarines in it's fleet our of which more than half are at the end of their service life.

L&T and Pipavav Shipyard, which have shipyards in Gujarat, have been recommended by the panel to build submarines in partnership with government owned companies as joint venture projects. With this, Pipavav and L&T will join a select group of four companies that have the capability to build submarines in India.

If submarine construction is opened up to the private sector, it will be a big opportunity for private players. There is no doubt that Indian private players are fully equipped to manufacture submarines. As a matter of fact, the Indian navy has achieved 90% indigenisation in building defence warships and other weapons platform in India without any foreign assistance.

In the year 1999, the MoD had prepared a 30-year plan to acquire and induct 24 submarines. According to the plan, the first six submarines were to be delivered in 2005 and to be completed by 2015. The rest of the 18 Submarines were to be delivered between 2015 and 2029.

The Indian Government gave the orders for the first six submarines to Mazgaon Docks (in Mumbai) in collaboration with the French Ministry of Defence Yard. But due to lack infrastructure at the Mazgaon Docks, the project met with serious delays. In fact, all the submarines will now be delivered only by 2022 instead of 2015.

Indian private companies have been continuously exploring opportunities to enter various segments of the Indian defence & aerospace sector. Earlier this year, the TATA group formed a joint venture with Lockheed Martin to make aerostructures for Lockheed's C-130 aircraft in India. L&T also has a joint venture with Cassidian, a division of European Aerospace And Defence (EADS) Group, for defence electronics. L&T has also worked in close cooperation with the DRDO on several projects. The Mahindra group has a joint venture with UK-based BAE Systems for production of manufacture mine-proof vehicles.

The way India is expanding it's military capability by acquiring various weapons, the Indian defence sector would alone need investments of around $200 bn to $300 bn in military & aerospace. The defence ministry has already signed offset contracts of around Rs 10,000 crores in the 11th plan ending this year with many private and public sector companies. Thanks to the Indian Governments strong India centric offset-policy and to the massive purchasing power of India, the country's private and public sector will now reap the benefits of the offset policy. It is raining millions of dollars for Indian companies.

Defence News - India On Fast Track To Open Submarine Construction To Pvt Sector
 

bhramos

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good news....
but how fast is the tender going to open... atleast another 10 years!!!!!!!!!!
 

Blackwater

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good news....
but how fast is the tender going to open... atleast another 10 years!!!!!!!!!!
Not in my life time. Iam 28, I can live till 75. My great,great,great,great grandchildren might see..
 

no smoking

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Just a question: how many submarine has india's private company built so far?
If answer is none, then we all know these private companies has no facility to build submarine! They need 100billions investment to get those related machines and testing equipments.And worst of worse, these investment would see any return in at least 10 years. So, who is going to pay that? India gov?
 

nitesh

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Just a question: how many submarine has india's private company built so far?
If answer is none, then we all know these private companies has no facility to build submarine! They need 100billions investment to get those related machines and testing equipments.And worst of worse, these investment would see any return in at least 10 years. So, who is going to pay that? India gov?
Google about L&T role in building of Arihant
 

Parthy

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