Defence shipyards are losing to private yards


Gujarat Global News Network, Delhi

Defence shipyards are not able to get assignment of indigenously building ships and other naval crafts. Higher labour cost and long procedural process for purchase of material are the main reasons according to Defence Minister.


Giving an idea of the ground reality, Minister of State for Defence Shri MM PallamRaju told Lok Sabha that Defence Shipyards quoted for Naval Offshore Patrol Vessels, Barges, Hovercraft, Fast Patrol Vessels, Interceptor Boats, Cadet Training Ships and Fast interceptor crafts but lost to private yards.

He said that higher wage rates for the labour increased overheads. Prices were pushed up because of longer time in procuring materials by observing laid down procedure. For indigenously building ships and other naval crafts, in accordance with the Defence Procurement Procedure, 2011, Chapter-Ill, Procedure for Defence Shipbuilding – Defence shipyards are awarded some contracts on nomination basis while other contracts are awarded on competitive basis.

Defence shipyards are participating with private yards in an open competition. In some of the cases they have lost out to private shipyards. He said that to enhance competitive edge Shipyards along with DPSUs are being modernized with state of art facilities.  Modern integrated construction methodology is also being introduced, he said.

In addition to this, he said, design and production facilities were being strengthened. Manpower at both skilled worker level and management level is beefed up, he said.
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