Defence PSUs losing out due to high wage rates: Antony

Discussion in 'Defence & Strategic Issues' started by ALBY, Nov 29, 2011.

  1. ALBY

    ALBY Elite Member Elite Member

    Sep 15, 2009
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    New Delhi: Defence shipyards have told the government that they were losing out on global tenders to private players because of high wage rates and high cost of material, Defence Minister A.K. Antony told the Lok Sabha Monday. He was replying to a question on whether Defence Public Sector Undertakings (DPSUs) are losing out on contracts for indigenously building ships and other naval craft to private shipyards.

    "Defence Shipyards quoted for Naval Offshore Patrol Vessels, Barges, Hovercraft, Fast Patrol Vessels, Interceptor Boats, Cadet Training Ships and Fast Interceptor Craft, but lost to private yards," he said.

    Antony said the major reasons of losing these contracts are higher wage rates for labour and thereby increase in overheads and longer time taken to procure materials by observing laid down procedures which pushes up their prices. To enhance competition in future, measures such as modernisation of DPSUs and defence shipyards with latest state-of-the-art facilities and introducing modern integrated construction methodology have been undertaken.

    The design and production facilities have also been strengthened along with induction of manpower both at the skilled worker level and at management level, he said.

    Noting that the construction of Indigenous Aircraft Carrier (IAC) is underway at Cochin Shipyard Limited (CSL), Antony said Indian Navy has experience in successfully designing different classes of warships. "The experience has enabled the Indian Navy to embark upon the design and construction of IAC at CSL. Inputs have been obtained from abroad in specialised areas of design such as Propulsion System Integration and Aviation Facilities Complex," he said.

    Manorama Online | Defence PSUs losing out due to high wage rates: Antony

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