Prviate Sector Barred from P75I, 2 to be made broad, Rest 4 in India

[Banana]

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The ministry of defence (MoD) has ruled that no private sector shipyard in the country has the infrastructure and capability required for building the high-tech conventional submarines that the Indian Navy wants. The long-delayed Project 75I, to build six conventional submarines for an estimated Rs 30,000-35,000 crore, will be divided between foreign shipyards and the defence public sector.

The Secretary of Defence Production, Shekhar Agarwal, has told Business Standard that the ministry has decided that the first two Project 75I submarines will be built abroad by the foreign vendor that wins the MoD contract. The next four vessels will be built in India, in the two defence shipyards that have the infrastructure for building submarines — Mazagon Dock Limited, Mumbai (MDL), and Hindustan Shipyard Ltd, Visakhapatnam (HSL).

This decision is a blow to private sector shipyards, especially L&T, which is playing a major role in building the Arihant-class nuclear submarines, as well as ABG Shipyard and Pipavav Shipyard, which have invested lavishly on infrastructure. Contacted for a comment, L&T’s defence business chief, M V Kotwal, said, “We have not been informed about any such development by the MoD. If it is true, it is extremely surprising. We have informed the MoD already about the capabilities and capacities that we have put in place for building submarines. These have already been demonstrated in the Arihant project. L&T has the engineering and manufacturing capability needed for building submarines in India.”

Three successive MoD committees have considered the thorny question of which shipyards can build a submarine. The latest, headed by V Krishnamurthy, Chairman of the National Manufacturing Competitiveness Council (NMCC), submitted a split opinion last year, which mentioned that L&T could also be considered.

“The MoD has examined the Krishnamurthy Committee report and decided that no private sector shipyard individually has the capability to build a submarine,” said Agarwal.

This decision was taken by the MoD’s apex Defence Acquisition Council (DAC) in January, says Agarwal. But, since it countermands an earlier CCS sanction, this will require sanction from the Cabinet Committee on Security (CCS). In 1999, the CCS had sanctioned the 30-Year Submarine Construction Plan for constructing 24 conventional submarines entirely in India. The latest MoD decision to build two submarines abroad runs contrary to this.

Business Standard has learnt that the Indian Navy has argued forcefully for building the first two Project 75I submarines abroad. The navy hopes this would forestall the delays that marred the ongoing Project 75, which involves constructing six Scorpene submarines in MDL, in partnership with Franco-Spanish consortium, Armaris (which was subsequently taken over by French shipbuilder, DCNS). The first Scorpene, which was to be delivered this year, will only be completed in 2015.

Top MoD sources apprehend that the CCS might be wary of okaying the proposal to build two submarines abroad. In 1999, the National Democratic Alliance (NDA) had regarded Indian shipbuilders capable of building 24 submarines in India. Thirteen years later, and with significant shipbuilding successes under its belt, including the indigenous production of a nuclear submarine, the CCS faces the risks for any decision to build abroad?

The CCS also faces a difficult decision in sanctioning a fresh Transfer of Technology (ToT), which the navy insists upon. India has already obtained ToT thrice: from Germany for the HDW submarine line; from France, for the Scorpene; and, to an unclear extent, from Russia for the nuclear INS Arihant. The technology for Scorpene alone cost Rs 6,000 crore. A fresh request for ToT risks accusations of failure in absorbing technology.

Senior naval officers who favour indigenisation point out that, when India bought the HDW Type 209 submarine in the 1980s, HDW built the first two submarines abroad. But the next two submarines, which were built in MDL, faced lengthy delays. Eventually, the MoD decided not to build any more, largely because of corruption allegations. Now the CCS will again have to recommend that construction model.

The MoD’s Acquisitions Wing is drafting a Project Note, which summarises these issues for the CCS. This effort has been under way for more than a month now.

The Scorpene is a 1,700-tonne submarine that can remain at sea for 40-50 days. A submarine traditionally lurks underwater, firing torpedoes to destroy enemy battleships. It dives as deep as 300 metres to evade detection, but its diesel-electric engines are not as silent, or have as much endurance, as the new “air-independent propulsion”, or AIP, that the navy wants in the new Project 75I submarines. India has an option to install AIP in the last two Scorpenes that MDL builds, and then retrofit AIP into the other four Scorpenes as well.

Doors slammed on pvt firms in submarine project

[IndoUS]

So our private shipyard can help in the construction of a freakin nuclear sub but not a conventional one. So much for self dependency. They should at least source some parts from private sector, it will cut down on the time and help create jobs.

[The enlightened]

Privatization is the only way forward in a country like India, where the incompetence of the Bureaucracy rules.

[Shaurya]

looks like maino mata wants to create jobs for firangis and not Indians , she is doing her duty ppl. do not disturb

[Abingdonboy]

looks like maino mata wants to create jobs for firangis and not Indians , she is doing her duty ppl. do not disturb

This makes perfect sense, the IN wants these subs ASAP and building them abroad in experienced and efficient shipyards will ensure timely delivery. And anyway Indian shipyard will be making 8-9 of the subs so it's all good.

[Shaurya]

This makes perfect sense, the IN wants these subs ASAP and building them abroad in experienced and efficient shipyards will ensure timely delivery. And anyway Indian shipyard will be making 8-9 of the subs so it's all good.

Nothing is good bro, just because we are a bit slow doesn't mean we should everything abroad, it's like saying that I cannot do anything more than this because I can only do this much, learn more, you will be more capable, to become a leader, we must lead, not follow

[Paan Singh]

i hoped for L&T..:(

[Abingdonboy]

Nothing is good bro, just because we are a bit slow doesn't mean we should everything abroad, it's like saying that I cannot do anything more than this because I can only do this much, learn more, you will be more capable, to become a leader, we must lead, not follow

Yes but like I said the vast majority of the subs will be made in INDIA but you have to balance industry development with the demand for such assets to protect national security. The end user (IN) is allowed to specify a timeline for induction, it can't be waiting forever just to develop an industry if they don't see the benefits. And to lead you must first LEARN, and this learning is coming from abroad. All the will in the world won't develop your industry it takes A LOT of work, a long time and A LOT of humble pie-India must for now acknowledge that there are things it can't do and needs some help to do.

[Dash]

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The ministry of defence (MoD) [B][COLOR="#FF0000"]

“The MoD has examined the Krishnamurthy Committee report and decided that no private sector shipyard individually has the capability to build a submarine,” said Agarwal.

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The underlined part is the reason for this decision.