MOD To Seek Fresh Bids From L&T, Reliance For 20,000 Cr Warship Project

Discussion in 'Indian Navy' started by WolfPack86, Apr 28, 2017.

  1. WolfPack86

    WolfPack86 Senior Member Senior Member

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    The ministry of defense (MoD) will be seeking fresh commercial bids from Larsen & Turbo (L&T) and Reliance Defense and Engineering (RDEL) – formerly Pipavav Defense and Offshore Engineering Company – for the Rs 20,000-crore Landing Platform Docks (LPD) for the Indian Navy project. On the basis of L1 (lowest bidder), decision will be taken on
    by Huma Siddiqui
    The ministry of defense (MoD) will be seeking fresh commercial bids from Larsen &Turbo (L&T) and Reliance Defense and Engineering (RDEL) – formerly Pipavav Defense and Offshore Engineering Company – for the Rs 20,000-crore Landing Platform Docks (LPD) for the Indian Navy project.
    On the basis of L1 (lowest bidder), decision will be taken on who will build the four LPDs – the biggest order to private sector in defense till date. Under Prime Minister Narendra Modi’s ‘Make in India’ initiative, New Delhi wants to build indigenously four such warships, which will be the biggest-ever made in the country other than the 40,000-tonne sea-borne aircraft carrier INS Vikrant.
    “The need for fresh commercial bids became necessary as the earlier RfP proposed that the LPDs will be divided between private shipyards selected through a competitive process and on nomination basis to Hindustan Shipyard (HSL),” sources told FE.
    Due to several reasons including the current order book of HSL, the decision has been taken to give all four LPDs to the private sector shipyards. According to Vice Admiral DM Deshpande, Controller of Warship Production and Acquisition, “If all goes well, a contract for procurement of Landing Platform Docks will be finalized by the end of this year.”
    As reported by FE in 2016, private firm ABG Shipyard (ABGSL) was out of the race as the company failed the Corporate Debt Restructuring (CDR) carried out by ICICI. The yard, which had been shortlisted by the Indian Navy along with L&T, did not get approval from the Controller of Warship, Production & Acquisition at MoD.
    If selected, RDEL will be working with DCNS of France and Spanish company Navantia, which designed the 13,000-tonne “Galicia” class LPD in the 1990s. More recently, the 27,000-ton Juan Carlos I Amphibious Assault Ship for Spain has tied up with L&T to work jointly on building LPDs. The vessel must be able to house combat vehicles (including main battle tanks, infantry combat vehicles and heavy trucks) and be able to undertake all-weather operations involving heavy lift helicopters of up to 35 tonne.
    In December 2013, the Indian Navy floated a Rs 20,000-crore domestic tender for construction of four LPDs and bids were sent to domestic shipyards L&T, Pipavav Defense, and ABG Shipyard.
    At the time, L&T had already cleared the financial and technical capacity assessment report, and last year the Defense Acquisition Council had cleared the capacity assessment of RDEL, which is now eligible for all defense projects. Each LPD will approximately cost Rs 6,000 crore and they are expected to be delivered over the next 10 years.
    http://www.indiandefensenews.in/2017/04/mod-to-seek-fresh-bids-from-l-reliance.html
     
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  3. WolfPack86

    WolfPack86 Senior Member Senior Member

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    India Revises Terms For Naval Transport Dock, Calls Fresh Bids
    The Indian government has asked two of its domestic manufacturers to provide fresh commercial bids for manufacturing 20,000-ton landing platform docks (LPD) by the end of this month.
    New Delhi — The government planned earlier to give the contract to both private and government-owned shipbuilders. Now, sources said, it was decided to give the entire four LPD contract to private players upon acceptance of their revised bids under the reworked plan.
    The Indian Navy has planned four 20,000 ton LPD for induction in the next decade. India's private manufacturers Reliance Defense and Engineering Limited (RDEL) and Larsen & Toubro (L&T) have cleared the financial and technical tests and have submitted commercial bids to the Indian defense ministry. L&T has a tie-up with Navantia of Spain and RDEL with DCNS of France.
    The Navy's proposed LPD ships will have the capacity to carry six main battle tanks, 20 infantry combat vehicles and 40 heavy trucks. Each ship is expected to carry 1,430 personnel, 470 sailors and 900 troops. The Navy expects to close the $2.6 billion LPD contract by the end of this year.
    Iranian Navy boats take part in maneuvers during the Velayat-90 navy exercises in the Strait of Hormuz in southern Iran (File)
    Indian Defense Ministry has assured naval forces to provide enough resources to augment the process of modernization which requires over $100 billion in the next 10 years.
    "Acknowledging the various crucial requirements of the Indian Navy, Defense Minister Arun Jaitley assured Naval Commanders that the Government is working on all issues very positively and is going to increase the resources to make good the shortfalls soon," a Defense Ministry statement said.
    Due to a funding shortage, there is widespread concern within the forces over modernization plan of naval forces. Against a projection of $21.96 billion for the capital budget in 2017-18, only $13 billion was allotted from the annual budget 2017-18 for various services (Army, Navy, Joint staff, Air force, DGOF, R&D and DGQA) and only $3 billion for naval forces. Most of the naval force's fund would be utilized to repay past contracts.
    http://www.indiandefensenews.in/2017/05/india-revises-terms-for-naval-transport.html
     
  4. SATISH

    SATISH DFI Technocrat Stars and Ambassadors

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    Well L&T had already won this contract but this government somehow wants to bring in Reliance-pipavav partnership.
     
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  5. ezsasa

    ezsasa Senior Member Veteran Member Senior Member

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    That may not be the right reading of the article.
    Earlier two were for Govt shipyards and two for private shipyards. now all four for private ship yards.
     
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  6. ezsasa

    ezsasa Senior Member Veteran Member Senior Member

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    LPD approved in DAC yesterday...................
     
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  7. WolfPack86

    WolfPack86 Senior Member Senior Member

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    Govt. gives green signal to build 4 LPD's worth over Rs 20,000 Crore
    In a major move to ramp up naval strength, the Defence Ministry has given an in-principle approval for construction of four amphibious assault ships, also called the Landing Platform Docks (LPD), in the private sector at a cost of over Rs 20,000 crore.

    It will be the largest ever naval project involving the private sector and the ships will be the biggest to be built in India after the under-construction aircraft carrier INS Vikrant.

    The ships are used to transport troops and equipment into a war zone by sea, primarily using landing craft.

    The long-pending project was given green signal by the Defence Acquisition Council, the top decision-making body of the Ministry, at its meeting yesterday, informed sources told PTI.

    The meeting was chaired by Defence Minister Arun Jaitley. Earlier, the Ministry had indicated that two LPDs will be built by state-run Hindustan Shipyard Limited, Visakhapatnam, while select private firms will be awarded contract to construct two others.

    Three private sector companies -- Reliance Defence and Engineering Limited (RDEL), Larsen & Toubro (L&T) and ABG Shipyard -- were in race initially for the mega project but ABG was disqualified on account of poor financial health.

    The sources said RDEL and Larsen and ToubroBSE 0.13 % will be asked next week to submit fresh commercial bids for the four LPDs.

    L&T has tied up with Navantia of Spain whereas Reliance Defence has tied up with French firm DCNS, considered a global leader in construction of LPDs.

    Each of the ships are likely to be in the range of 30,000 and 40,000 tonnes.

    The Navy has been strongly pushing for firming up the project as soon as possible.

    A top Navy official last month had said the contract for procurement of the four LPDs will be finalised by the end of this year.

    http://www.defencenews.in/article.aspx?id=262177
     

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