Defence minister Manohar Parrikar specified on Thursday that the private domestic shipyards would now start bagging contracts to repair warships that belong to the Indian Navy.
Private shipyards that build Indian naval ships took off over three to four years ago and, now, these shipyards will have an additional role — that of repairing naval ships.
Defence minister Manohar Parrikar specified on Thursday that the private domestic shipyards would now start bagging contracts to repair warships that belong to the Indian Navy. He was speaking at a session on 'Shipbuilding, Ship Repair and Ship Breaking' at the Maritime India Summit 2016.This plan of offloading the repair of warships to private shipyards is under consideration with the Ministry of Defence, Parrikar added.
The move will help the naval dockyards in the country and some public sector shipbuilders to offset their increasing load. For the past several years, the naval dockyards have been struggling to cater to the fleet's upkeep and maintenance as they are overloaded with work. On top of that, the fleet strength of the naval forces, too, is on the increase.
On the other hand, giving out repair jobs to the private domestic shipyards is expected to boost the struggling private shipbuilding sector. Since the 2008 global economic slowdown, the shipping industry has taken a major hit. Used vessels are cheaper and orders for new ships have gone down considerably.
Parrikar said that "due to financial constraints, certain private ship yards are unable to deliver these orders in time". Therefore, a memorandum of understanding will also be signed in the near future between the Ministry of Defence and Ministry of Shipping to better the private sector's participation and financial situation in warship building.
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