Absolutely, I think a kick to the bottom for PSU shipyards is due, just like OFB but MoD would wake up is the question.
I'm not very optimistic. Remember that the shipyards today are already at the point when OFB has now reached (corporate entities with GOI as biggest/only stakeholder), and their efficiency isn't anything to write home about.
So corporatization in of itself isn't likely to do any wonders as long as disinvestment doesn't happen & as long as the companies have the endlessly deep pockets of GOI (thanks to taxpayer's money) to fall back on. Not to mention the inherent conflict of interest of the Govt awarding a contract to a Govt-owned company.
What corporatization CAN do, is to open the doors for eventual Privatization i.e. as happened now with Air India. Unless some of India's big business houses take control of these shipyards, nothing really good is gonna happen.
Atleast no one can take nuke subs away from L&T.
From what I've heard, it was actually the Russians that chose L&T as the production partner. GOI at the time was insistent that the work be handled by a Govt-owned company (citing security & other such reasons), but the Russian side was adamant that none of the state-owned engineering houses at the time were capable of absorbing the technology of constructing nuclear submarine hulls - where the metallurgy & steelwork is in a totally different league compared to surface ships or even diesel subs (much lower diving depths require stronger characteristics, not to mention shielding from the reactor radiation).
The nuke subs represented strategic deterrence so the babus couldn't meddle any further, they had to give in.
So the fact that no one can take nuke subs away from L&T certainly isn't due to lack of trying on the part of GOI.
Funny to see that L&T has min-sub design but not orders.
Yeah, cuz MoD gave the 2 x SOV order to HSL on a platter.
L&T protested but to no avail. On the one hand a company that builds 7,000-ton SSBNs, and on the other a DPSU that bungled the refit work of a Kilo-class for NINE YEARS.
Guess which one was "nominated" by MoD for the contract? Certainly not L&T.
MDL has told its investors that the govt may split the P75I order between MDL & L&T.
Interesting...hadn't heard/paid attention to this.
This could unnecessarily complicate the situation & inflate cost by a lot. The P75I, provided the French offer is selected, is one contract where I actually would prefer if it stays with MDL. We've already put in over a decade's work & billions of dollars into developing MDL's ability to build Naval Group subs. If a design like SMX 3.0 which has a good amount of commonality with Scorpene is selected, that could translate into significant savings of time & money.
On the other hand, having a Private-sector yard capable of building large diesel subs could turn into a much better net benefit in the long run.