Two Indian business majors, L&T and Pipavav Defence and Offshore Engineering Company, formerly known as Pipavav Shipyard, have joined forces with Mazagon Dock with the aim of building warships for the Navy.
The decision on the joint venture comes in the aftermath of Mazagon Dock’s initial partnership with Pipavav, which raised eyebrows of many other shipbuilders, questioning the transparency in the selection process, the Hindu Business Line writes.
The confusion prompted the Defence Ministry to set forth the guidelines for establishing joint venture companies by Defence public sector undertakings, which have been followed to the letter with the establishment of the new joint venture.
According to Mr K. Venkataramanan, Managing Director of L&T, it depends on the minimum economic quantity as well as how delivery schedules align with the originally targeted delivery programme of Mazagon Dock, how much L&T would get out of Rs 1 lakh crore order book of Mazagon Dock.
After its takeover by the Government in 1960, Mazagon Dock grew rapidly to become the premier war-shipbuilding yard in India, producing warships for the Navy and offshore structures for the ONGC and Coast Guard. The company’s current portfolio of designs spans a wide range of products including submarines, merchant ships up to 30,000 DWT, platforms and jack up rigs.
[mappress] Naval Today Staff, July 25, 2012