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Private Yards Recommended for Indian Sub Deal

PARIKRAMA

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Private Yards Recommended for Indian Sub Deal

NEW DELHI

Only private shipyards will receive a tender to make six air-independent propulsion (AIP) submarines if the Defence Ministry follows the recommendations of an expert committee, an MoD source said.

The US $12 billion tender will be sent to private yards Pipavav Defence and Offshore Engineering and Larsen & Toubro, the source said.


The Navy committee, headed by Vice Adm. A.V. Subhedar, controller of warship production and acquisition, also assessed state-owned Hindustan Shipyard and Mazagon Docks. He made his remarks during his first presentation to the MoD this month.

While the committee is expected to give its final recommendations to the MoD next month, the observations made by members during their presentation cannot be easily ignored by the MoD, the source said, because the Navy wants a time-bound delivery of submarines to add to its falling strength.

The committee members said that, while the state- owned yards have the capability and capacity to build submarines, they should not be involved in the competition of the forthcoming tender under Project 75. The state-owned yards have their hands full with excessive orders and have poor delivery records. For example, the French Scorpene submarine being built Mazagon Docks is already behind schedule by more than four years.

In comparison, Pipavav and L&T have the capability and capacity and can delivery quickly, the committee members said in their presentation.

Out of the two approved private yards, Pipavav Defence has no experience manufacturing submarines but has a technology tie-up with DCNS of France. L&T has been involved with homemade nuclear submarine Arihant.

The MoD is preparing to issue a fresh request for proposal in the "Buy and Make (India)" category, which is reserved for domestic companies that can tie up with overseas shipyards.

In October, the government of Narendra Modi reversed a proposal to float a global tender for the submarines under which two were to be purchased from overseas yards while the remaining four submarines would have been built by state-owned shipyards.

A Navy official said that by cancel the global bids for Project 75I in October, the new government has "hit itself on the foot as the exuberance to 'Make in India' will further delay acquisition of weaponry, seriously affecting the combat worthiness of the Indian defense forces."

With the MoD is still undecided on whom to invite in the competition, and with the committee recommending only private shipyards, the project could get complicated and controversial.

That's because the timing of the buyout of Pipavav by Reliance Anil Dhirubhai Ambani Group coincides with the committee's assessment, said retired Navy Cmdr. Ashish Pathak.

Private Yards Recommended for Indian Sub Deal
 
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I am worrying about delay.....:(

We don't know capability of both shipyards...Adding 1-2 years delay...very sure
 
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Hi,
We should rather go by a modal of 1 public and 1 private shipyard . It would have ensured quick and reliable results with a growth in capabilities of both.
Cheers
Thanks
 
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I am worrying about delay.....:(

We don't know capability of both shipyards...Adding 1-2 years delay...very sure

Not exactly . This committee is doing good actually . Private players should be involved . But very contradicting statements from the previous one . Which they both these shipyards will be giving 1 each and Govt ship yard will build 4 . By opening 3 supply line in three different shipyard . Delivery will be very fast . Since P75I submarines are bigger than Scorpions we could order next 6 follow on . these two shipyards would be provided with full contract . So even if these shipyards waste some time for obsorbing ToT govt shipyard will keep the phase .

So nothing to worry about this . It's better to go with 1+1+4 format . Anyway line will have continue so private shipyards won't loss their money .

Hi,
We should rather go by a modal of 1 public and 1 private shipyard . It would have ensured quick and reliable results with a growth in capabilities of both.
Cheers
Thanks

Read above comment . 1 +1 for the private sector and 4 for the PSU .
 
.
Not exactly . This committee is doing good actually . Private players should be involved . But very contradicting statements from the previous one . Which they both these shipyards will be giving 1 each and Govt ship yard will build 4 . By opening 3 supply line in three different shipyard . Delivery will be very fast . Since P75I submarines are bigger than Scorpions we could order next 6 follow on . these two shipyards would be provided with full contract . So even if these shipyards waste some time for obsorbing ToT govt shipyard will keep the phase .

So nothing to worry about this . It's better to go with 1+1+4 format . Anyway line will have continue so private shipyards won't loss their money .



Read above comment . 1 +1 for the private sector and 4 for the PSU .

If the government tried this, it would go down the same route as the Avro replacement deal. You aren't talking about public sector corporations here; Private companies will put profits first, as they should if they are to survive. And no matter what anyone might suggest, manufacturing one submarine isn't profitable, or worth the investment.

Don't tell me you expect two shipyards to spend some Rs 1000-1500 crore each to augment capability for manufacturing 1 submarine. And that figure is excluding the recruitment and training of engineers who would do the actual work.

This is not an IT endeavor, where you can simply hire and fire staff as you please. Training each engineer could cost upto Rs 30,00,000-50,00,000, excluding their salaries. You don't fire them after manufacturing 1 submarine.
 
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If the government tried this, it would go down the same route as the Avro replacement deal. You aren't talking about public sector corporations here; Private companies will put profits first, as they should if they are to survive. And no matter what anyone might suggest, manufacturing one submarine isn't profitable, or worth the investment.

Don't tell me you expect two shipyards to spend some Rs 1000-1500 crore each to augment capability for manufacturing 1 submarine. And that figure is excluding the recruitment and training of engineers who would do the actual work.

This is not an IT endeavor, where you can simply hire and fire staff as you please. Training each engineer could cost upto Rs 30,00,000-50,00,000, excluding their salaries. You don't fire them after manufacturing 1 submarine.
Let's clear something Herr first. The argument on should private sectors be involved in P75I is literally waste of time. As you can mark my words It's a done deal now.We will rope in private sectors with one government shipyard supply lines. OEM now will spread ToT to three Indian shipyards . There by this country will have 3 submarine supply lines. 1+1 PVT + 4 PSU . And may be we will go for additional P75I given the facts that our underwater fleet need some major boost.

don't forget these submarines are more powerful and bigger than P75 and these super stealth with vertical silos will keep our IOR safe till 2040 or more. It's a done deal. now we need to wait for further clarification on this new report. All 6 will be built by 1 private or other formula . we need to spread our ToT and we can expand our ssk strength to what we have planned for. Atleast 30-40 SSK submarine by 2040
 
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