sudhir007
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To meet demand, Navy for PPP model to build ships
In a bid to bridge the gap between demand and supply of naval ships, the Indian Navy is now deliberating upon speeding up the process of using Public Private Partnership (PPP) and forming a joint-venture with a modern and well-equipped private shipyard to meet the country's naval requirements. The matter is being discussed in the ongoing Naval Commanders Conference that began on May 18.
The Navy, as per projected estimates, plans to increase its force level to 150-160 ships by 2022. Given its current fleet strength and the likely decommissioning of some older ships, on an average, it will require seven new ships annually.
However, given the past track record of Defence PSUs, MDL and GRSE, concerns are being raised about the manufacturing capabilities of these units to deliver Destroyers, Stealth Frigates and Submarines in time.
"The only way out to speed up the process will be to use the PPP model and form a JV with a private shipyard, which has modern infrastructure and adequate production capacities to meet the country's requirements," states a note being discussed in the conference.
Another key point which the Navy's top brass will mull over is about building future warships in India, either under foreign collaboration/PSU expertise or the PPP route.
It is also being advocated that the Navy starts the process of manufacturing four P15B Destroyers through PPP. "Equitable distribution of business opportunities to the private sector would bring in cost efficiencies of a much higher order.
Countries like the UK, the US, Germany and other developed nations have almost all the defence companies in the private domain. In India, we could begin with the PPP model," the note states.
The delivery of warships for the Navy has been plagued by delays and cost overruns.
While India's first Stealth Ship was delivered after 10 years, the original cost for Stealth Frigates escalated from Rs 2,250 crore to Rs 9,000 crore. Similarly, the cost of Destroyers escalated from Rs 3,580 crore to Rs 11,876 crore. The country's first submarine is expected to delivered by 2015, a delay of more than five years from its original delivery date.
Concerns are also being raised that the ongoing Anti Submarine Warfare Corvette (ASWC) project, where four vessels have to be delivered, will not happen before 2015.
Most of these delays have been attributed to high work-load, low production capacities, cumbersome procurement procedures at PSUs, outdated shipbuilding practices, old machineries, ageing manpower, low scope of expansion and modernisation due to site constraints and the fact that no modular shipbuilding facility is available with the government or Defence PSU shipyards.
In a bid to bridge the gap between demand and supply of naval ships, the Indian Navy is now deliberating upon speeding up the process of using Public Private Partnership (PPP) and forming a joint-venture with a modern and well-equipped private shipyard to meet the country's naval requirements. The matter is being discussed in the ongoing Naval Commanders Conference that began on May 18.
The Navy, as per projected estimates, plans to increase its force level to 150-160 ships by 2022. Given its current fleet strength and the likely decommissioning of some older ships, on an average, it will require seven new ships annually.
However, given the past track record of Defence PSUs, MDL and GRSE, concerns are being raised about the manufacturing capabilities of these units to deliver Destroyers, Stealth Frigates and Submarines in time.
"The only way out to speed up the process will be to use the PPP model and form a JV with a private shipyard, which has modern infrastructure and adequate production capacities to meet the country's requirements," states a note being discussed in the conference.
Another key point which the Navy's top brass will mull over is about building future warships in India, either under foreign collaboration/PSU expertise or the PPP route.
It is also being advocated that the Navy starts the process of manufacturing four P15B Destroyers through PPP. "Equitable distribution of business opportunities to the private sector would bring in cost efficiencies of a much higher order.
Countries like the UK, the US, Germany and other developed nations have almost all the defence companies in the private domain. In India, we could begin with the PPP model," the note states.
The delivery of warships for the Navy has been plagued by delays and cost overruns.
While India's first Stealth Ship was delivered after 10 years, the original cost for Stealth Frigates escalated from Rs 2,250 crore to Rs 9,000 crore. Similarly, the cost of Destroyers escalated from Rs 3,580 crore to Rs 11,876 crore. The country's first submarine is expected to delivered by 2015, a delay of more than five years from its original delivery date.
Concerns are also being raised that the ongoing Anti Submarine Warfare Corvette (ASWC) project, where four vessels have to be delivered, will not happen before 2015.
Most of these delays have been attributed to high work-load, low production capacities, cumbersome procurement procedures at PSUs, outdated shipbuilding practices, old machineries, ageing manpower, low scope of expansion and modernisation due to site constraints and the fact that no modular shipbuilding facility is available with the government or Defence PSU shipyards.
