Defence Minister Reviews Performance of Shipbuilding Yards

Top Stories

New Delhi: Defence Minister Rajnath Singh on February 17 reviewed the performance of four Defence Public Sector Undertakings (DPSUs) engaged in shipbuilding – Garden Reach Shipbuilders & Engineers Limited (GRSE), Goa Shipyard Limited (GSL), Mazagon Dock Shipbuilders Limited (MDL) and Hindustan Shipyard Limited (HSL) in New Delhi. Senior officials of the DPSUs gave presentations in separate meetings with the Minister and apprised him about their current activities and future plans.

Singh appreciated the improvements brought about by these DPSUs in their performance over the years and urged them to further strive to become world class and compete at international level.

Saankhya Lab

Appreciating the indigenisation levels achieved by these DPSUs, the Minister urged them to explore further avenues in the push for ‘Make in India’. He also called for full capacity utilisation and exploring new modes of business models to increase exports.

The GRSE has a significant presence in the segment of Bailey Bridges, with Border Roads Organisation (BRO), Indian Army and civil sectors being the prime customers. GRSE is exporting such bridges to friendly neighbouring countries like Bhutan, Nepal, Myanmar and Bangladesh. GRSE has the distinction of delivering more than 100 warships to the Indian Navy and Indian Coast Guard. The last ship of P-28 project namely Kavaratti is scheduled for delivery to the Indian Navy shortly. With excellent track record in ship deliveries, GRSE delivered 11 warships within the last 32 months.

The GSL has made significant inroads into global market with export of diverse vessels to Indian Ocean Region (IOR) countries. Till date, the shipyard has exported 36 vessels and a Damage Control Simulator to friendly foreign countries. These projects were delivered ahead of schedule. The Company’s superior quality ships received accolades at the highest levels. Its dominance in exports is evident from 15 overseas deliveries made in the last four years including two large Offshore Petrol Vessels to Sri Lanka, Mauritius and Myanmar. The GSL has also got into understandings with various organisations as part of expanding its operations and scope.

In order to give an impetus to Make in India campaign, a dedicated department of indigenisation was set up in November 2015 along with a roadmap for indigenisation till 2030. The MDL has successfully indigenised certain equipment such as sonar dome, ship installed chemical agent detection system, bridge window glass, main batteries for Scorpene submarines, multiple cable transit glands and remote-controlled valves with various companies on a no cost no commitment basis.

With best productivity measures and improved morale, the HSL has undergone a major turnaround by achieving operating and net profit for the last four consecutive years (FY 2015-16 to 2018-19) after a gap of 65 years without any financial assistance/grant from the Government.

HSL has turned around in securing orders in the competitive bidding process. HSL has emerged as the lowest bidder (L1) in the competitive tendering process for three tenders during the FY 2018-19. All these contracts have been secured amidst stiff competition from public sector shipyards and private shipyards. HSL has signed two major shipbuilding contracts with Indian Navy i.e. two Nos Diving Support Vessel and four Nos 50 Ton BP Tugs worth Rs 2,392.94 crore and Rs 260.72 crore respectively.

Leave a Reply