Mazagon Dock, Pipavav ink JV to build warships

Discussion in 'Indian Navy' started by Galaxy, Sep 12, 2011.

  1. Galaxy

    Galaxy Elite Member Elite Member

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    Mazagon Dock, Pipavav ink JV to build warships

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    Pipavav Shipyard will set up a joint-venture company with Mazagon Dock under the name Mazagon Dock Pipavav Ltd to build warships.

    Mazagon Dock which is controlled by Ministry of Defence (Government of India) selected the Pipavav as its JV partner. The board of Pipavav Shipyard today approved setting up of the JV company.

    This is the first time post independence that a private sector company has been selected by a company controlled by the Ministry of Defence to build warships together, which will result in speeding up the delivery of warships to the Indian Navy.

    Pipavav's board termed this as the golden day in its corporate history. According to the company the JV will be a game changer and will help it scale new highs.

    On the Bombay Stock Exchange, shares of Pipavav Shipyard zoomed 10% in a weak market today. The company's stocks were trading at Rs 90, up 10.09% at IST 1444 hours.


    http://www.business-standard.com/india/news/pipavav-shipyards-jvmazagon-dock-for-warships/146455/on
     
    Zebra, Daredevil and Pintu like this.
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  3. Galaxy

    Galaxy Elite Member Elite Member

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  4. Zebra

    Zebra Senior Member Senior Member

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    Good news .

    HAL should also think about this kind of JV with some Indian company .
     
  5. debasree

    debasree Regular Member

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    still no news of what kind of ships ,they want to built logistical or tactical,and about subs they have to go for joint venture ,i want to know which company they choose .
     
  6. plugwater

    plugwater Elite Member Elite Member

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  7. SpArK

    SpArK SORCERER Senior Member

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    WTF?????:confused:


    http://www.reuters.com/article/2011/09/26/pipavav-mazagon-jv-urgent-idUSL3E7KQ21N20110926

    India's defence ministry puts Mazagon-Pipavav JV on ice



    * Defence ministry to wait till JV policy in place
    * Govt's decision to shelve JV after complaints from pvt shipyards
    * The JV would have given Pipavav access to Mazagon's $21.2 bln orderbook (Adds quotes, details, background)
    MUMBAI, Sept 26 (Reuters) - India's defence ministry has decided to put on hold a joint venture between the state-run Mazagon Dock and private sector shipbuilder Pipavav Defence and Offshore Ltd after reports of lack of transparency in the
    deal.
    The decision to put the deal on ice comes at a time when the government is trying to combat alleged corruption charges on a host of issue including the allocation of telecom spectrum and contracts for commonwealth games.
    The move to put the first private-public defence joint venture on hold also comes when Prime Minister Manmohan Singh's government has been accused of policy paralysis by global investors and corporate India.
    The defence ministry has decided to wait till a policy on JVs is put in place by the government, it said in a release posted on the government's website, justifying its move.
    "We are treading on a new path and we would like to ensure that transparency is maintained at all levels," Defence Minister A.K.Antony said.
    Earlier this month, Pipavav Defence said it had formed an equal JV with Mazagon Dock to build submarines and warships, making the private firm eligible to execute part of Mazagon's orderbook of $21.2 billion. .
    Antony said on Monday the ministry will study the complaints received from some private shipyards regarding the JV. He didn't elaborate on the nature of the complaints.
    Antony also said that JVs must compete for contracts and should not get them on nomination basis.
    "The issue needs to be fully examined and settled before any forward movement takes place on this front," Antony said.
    The Mint newspaper had reported earlier in September that engineering conglomerate Larsen & Toubro had questioned Mazagon Dock's decision to select Pipavav as a joint-venture partner to build warships, saying the selection process was not transparent.
    Nikhil Gandhi, the chairman of Pipavav Defence, could not be immediately reached for a comment. He had said during a press conference to announce the Mazagon Dock joint venture that the selection process was transparent.
    Larsen & Toubro couldn't be immediately reached.
    India's private firms including ABG Shipyard , Bharati Shipyard and Larsen & Toubro have been eyeing the lucrative defence sector business. Pipavav's Gandhi had said that his group will be investing over $1 billion to build warships.
    Shares in Pipavav, valued at $1.09 billion surged nearly 12 percent on Sept 12 when the deal was first announced. The shares have however fallen almost 11 percent since the Sept 12 closing price.
    On Monday, the stock closed flat at 81.25 rupees, ahead of the announcement by the defence ministry.
     
  8. agentperry

    agentperry Senior Member Senior Member

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    Indian govt agencies will make designs and sub systems for the new ships which will be co-constructed by pipapav.

    the whole JV thing is nothing but subletting contract/tendering. im skeptical of pipapav coming up with new designs as they dont have any new gen tech R&D facility like sonars and all. atmost they can co-operate with the MoD shipyards in providing consultation regarding the difficulty in production process.
     
  9. Zebra

    Zebra Senior Member Senior Member

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    Pipavav warship joint venture put on hold

    Ajai Shukla / New Delhi September 27, 2011, 0:43 IST

    The ministry of defence (MoD) on Monday sent a clear signal that private Indian defence shipyards are to be treated as serious partners in building warships for the Indian Navy.

    Responding to written complaints from three private shipbuilders about the allegedly improper selection by government-owned Mazagon Dock Ltd (MDL), Mumbai, of Gujarat-based Pipavav Shipyard as its joint venture (JV) partner, the defence minister has struck down MDL’s decision.

    The MoD announced that “the ministry had decided to put on hold the JV of MDL till a policy on JVs is put in place by the government... Antony (defence minister) said the ministry would study the complaints received from some private shipyards regarding the JV. The issue needs to be fully examined and settled before any forward movement takes place on this front. He also said that JVs must compete for contracts and not get them on nomination basis. Shri Antony said we are treading on a new path and we would like to ensure that transparency is maintained at all levels.”

    In an apparently stinging reproof to MDL, the public sector shipyard was not informed of this decision till the time of going to press. Antony’s comments were made while addressing the parliamentary consultative committee for defence here on Monday.

    Asked for his comments, vice-admiral (retired) H S Malhi, the chairman of MDL, told Business Standard, “The MoD has not yet informed us of this decision. I am hearing of it through this press release. We have no comments to offer.”

    Pipavav Shipyard chairman Nikhil Gandhi, in Paris at present, said: “It’s a very sad and disturbing day. But I am sure I will stand vindicated, as we were selected after a transparent process which went on for eight months. We have invested a billion dollars in building the required infrastructure and not waited for orders first to build capacity.”

    In contrast, there was jubilation amongst the three private sector shipyards — Larsen & Toubro, ABG Shipyards and Bharati Shipyard — that had protested about MDL’s “hasty” decision to form a JV with Pipavav. L&T chairman A M Naik told Business Standard, “The MoD has taken an appropriate decision. The entire process (of selecting a JV partner) had been rushed through without a transparent evaluation process. Now, we hope there will be a proper evaluation, based on a points system, awarded for each shipyard’s infrastructure, capability, board structure and ownership structure.”

    Naik says with 32 per cent of his company held by financial institutions, and the government being his largest shareholder, L&T is as much a government-owned company as a private sector one.

    The controversy began when the MDL board, on September 9, decided that Pipavav was the private company with which MDL would form a JV for warship building. Even before the MoD could approve the decision, Pipavav made a public announcement, triggering a fierce counter-attack by L&T, ABG and Bharati.

    At the root of this controversy is the question of which shipyards will get the lucrative contracts to build the navy’s requirement of tens of major capital warships in the coming years. The navy’s requirements, which remain classified, are spelt out in the Maritime Capability Perspective Plan 2012-2027. MDL enjoys a premium position as the only shipyard with the capability, capacity and experience of building even the destroyer class of heavy warships (over 7,500 tonnes). However, located as it is in congested Mumbai, MDL has a space constraint that places limits on the number it can build.

    Therefore, earlier this year, it set out to identify a private sector shipyard as a JV partner. That aim was to marry MDL’s expertise and experience with the private shipyard’s capacity.

    After MDL issued an Expression of Interest (EoI) on March 11 to several private shipyards, four were shortlisted: L&T, ABG, Pipavav; and Bharati. According to executives from these shipyards, they made presentations to the MDL board on August 23, outlining their respective visions of the proposed collaboration. Based on those presentations, MDL sent a letter on August 25 for details of the business plan for the JV. Before any shipyard could reply, the MDL board chose Pipavav as their partner, on September 9.

    Sources within the MoD say the process of selection would now be started afresh, with clearly defined parameters once the JV policy was in place.


    Pipavav warship joint venture put on hold
     
  10. Zebra

    Zebra Senior Member Senior Member

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    State-Run Mazagon Dock Confirms JV with Pipavav Defence to Build Warships and Submarines

    Posted on: May 04, 2012

    India’s largest private defence shipyard Pipavav Defence and Offshore Engineering has been chosen by state-run Mazagon Dock as a joint venture partner to build warships and submarines for Indian Navy. While the joint venture was stalled earlier due to a row over the Mazagon Dock’s selection policy, the joint venture now stands confirmed by the government.

    According to Nikhil Gandhi, chairman of Pipavav Defence, the 50:50 joint venture named Mazagon Dock Pipavav will implement part of the existing orders of Mazagon Dock of Rs 1,00,000 crore ($21.69 billion) and also bid for future defence contracts in India. The venture has been established to fast-track warship and submarine contracts held currently by the Mazagon Dock.

    This crucial joint venture was put on hold since other private sector giants and Pipavav Shipyard’s rivals including Larsen & Toubro and ABG Shipyard had complained to the government over the inconsistencies in the selection process by Mazagon docks. However, Defence Ministry has overruled any allegation of foul play after studying the complaints received from the other private shipyards. This tie-up will give Pipavav Shipyard a distinct edge over its rivals such as L&T and ABG Shipyard who are also up for a chunk of the defence pie.

    Pipavav Shipyard covers roughly 200 hectares with approximately 720 m of sea front and 685 m of outfit quay. Besides being the largest shipyard in India, Pipavav is also one of the largest drydock in the world. The latest joint venture would afford better utilisation of Pipavav's shipyard which is considered as one of the most modern in India. Mazagon Dock will now use Pipavav's facility in Gujarat to build orders that it has on hand.

    In an earlier statement, Pipavav Chairman revealed that the yard was equipped to build five warships or ten smaller ones a year. The Mazagon order book, with part execution alone, is expected to keep the company busy for over 15 years. Pipavav had also stated that it would require five yards of Pipavav's size to complete the Mazagon Dock's pending orders.

    The Indian government had formulated a policy in 2011 which led to the public-private partnerships in the defence sector. The state-run Mazagon Dock was the first to be exposed to this collaboration and the rest of the state-owned shipyards will be gearing towards the same owing to the backlog and size of defence orders in the country.

    State-Run Mazagon Dock Confirms JV with Pipavav Defence to Build Warships and Submarines - Defence Now

    :thumb: :cheer2: :hurray: :happy:
     
  11. agentperry

    agentperry Senior Member Senior Member

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    ok so now its clear that the pvt industries will be making warships for IN under the ambit of govt controlled shipyards. the critical technology is not given in hands of pvt players while their shipyards are being used for speeding up the production. good strategy indeed.
     

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