Goa Shipyard Seeks Foreign Tie-up for $5.3 billion Navy Order for MCMVs

Maritime Activity Reports, Inc.

March 22, 2015

Image: Goa Shipyard Ltd

Image: Goa Shipyard Ltd

 India's Goa Shipyard Ltd (GSL) has decided to tie up with the foreign yards for the technology transfer required to create these high-tech ships, after bagging the deal to build Mines Counter-Measures Vessels (MCMVs) for the Indian Navy.

 
Chairman and managing director (CMD) of GSL Rear Admiral (retired) Shekhar Mital said that the building of 12 MCMVs by the GSL would start after 3 years, following the approval of Defence Acquisition Council and finalisation of the contract.
 
The Union Defence Ministry had recently cleared the Rs 32,000 crore ($5.3 billion) -worth project to manufacture 12 MCMVs, which will be built by the GSL. 
 
"We will have to tie up with a foreign shipyard because we don't have the technology to build MCMVs. The contract will be finalized in 8 months. We will be able to roll out the vessels six years from now. The actual construction on this project will begin after three years," Mittal said.
 
GSL is contemplating the possibility of going for a tie-up with the foreign counterpart for technology transfer.  It has shortlisted countries like Russia, Spain, Sweden, Italy and Korea, where they can scout for the required technology.  "Depending on the naval specifications, we will finalise the partner," he said. 
 
The shipyard will float a global tender, inviting expression of interest for the technology transfer, Mittal added. 
 
More than 50% of the MCMVs will be indigenized. The MCMVs, which are part of the 'Make in India' campaign would be 50 per cent indigenous. 
 
He said that MCMV is a very sophisticated vessel. “Indian Navy is looking for the vessels which would meet their requirement for the next 30 years,” he said.
 
GSL will also involve a local player to work on the mega project, a move which will sharply improve the state's economy and the local marine engineering industry. 
 
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