Garden Reach aims at big defence deals

Kolkata-based defence public sector undertaking (PSU), Garden Reach Shipbuilders & Engineers (GRSE) is eyeing orders worth around Rs 20,000 crore over the next few years.

These include seven stealth frigates  worth around Rs 16,000 crore.

Rear admiral, KC Sekhar, told DNA that the entire defence order of Rs 45,000 crore will be shared between GRSE and Mazagon Docks in Mumbai. GRSE is looking to bid for tenders worth around Rs 1,500 crore for various small ships and negotiating for the amphibious landing ship tanks for the navy worth about Rs 2,000 crore.

It is also looking to bag orders for fast petrol vessels for coast guards at about Rs 500 crore to be delivered by 2012.

The PSU, which mainly supplies naval ships, has been manufacturing anti-submarine warfare corvettes, to be delivered to the navy over 2001-15.

According to rear admiral Sekhar, the corvettes will have 80% indigenous manufacturing for the first time in India.

“There is a huge potential for naval ships in India, especially with private players now entering the fray,” rear admiral Sekhar said.
He added that the market is worth more than Rs 70,000 crore.

To deliver on it’s Rs 20,000-crore-order promise, GRSE expects to invest Rs 12,000 crore to procure equipment from domestic and overseas companies and around Rs 5,000 crore in services. While 50% of the funding will come from the defence ministry, the balance will be sourced from internal accruals.

He stressed that the challenge lies in timely delivery of the orders considering that it takes 3-5 years to build a single ship. Also, he underlined the need to develop ancillary vendors within the vicinity, to stop dependence on outsourcing from units located far from the manufacturing site.