HHI, HSL Ink Pact to Build Submarines
Hyundai Heavy Industries (HHI), world’s largest shipbuilder, signed memorandum of understanding (MoU) with Hindustan Shipyard Limited (HSL) to build submarines for India as part of a 40-year program to strengthen the nation’s naval forces.
The agreement states that the Korean shipbuilder will work with the Indian company to build six submarines that the nation’s navy is preparing to order. Hyundai will help us in the building of submarines as they are the biggest shipyard in the world and have scientific equipment and methodology, says HSL sources.
The development comes close on the heels of HSL forming a consortium with BHEL (Bharat Heavy Electricals Limited) and Mishra Dhatu Nigam Limited (MIDHANI) to bag the order for construction of six submarines, which are estimated to cost a whopping Rs 60,000 crore ($10 billion), under Project 75 (I) of the ministry of defense.
The consortium also gives the much-needed financial stability to HSL, which suffered a lot since it was shifted from Ministry of Shipping to Defense in February 2010 in recognition of its strategic location and proven experience. HSL was brought under MoD with the objective to build strategic vessels and warships for Navy.
“Since HSL wants to be a part of the submarine manufacturing project by the navy, they asked us for help,” said a spokesman for HHI. “Because they are the largest shipbuilder in their country, the possibility that they will win the order is big.”
