25 August 2011

India: Shortfall in Production of Indigenous Naval Warships

The CAG has conducted a performance audit of the indigenous construction of Indian naval warships, and has presented a Report to the Parliament in March 2011. While acknowledging that India has attained, credible capacity in warship building over the years, the Report also includes a number of observations and recommendations relating to more efficient project management, better coordination amongst various agencies involved in the process, and improved financial controls.

The Report does not contain any observations on an alarming fall in the productivity of Indian shipyards. It acknowledges that warship building, on its own, is a complex, time- consuming and iterative activity. This situation becomes more complex as a result of our dependency on foreign sources for procurement of major weapons and sensors, and also our aspirations for increased indigenous content in Indian warships, leading to delays in the process of delivery of ships.

To meet the growing requirements of indigenous shipbuilding and to adopt modern shipbuilding methods, Defence PSUs have embarked on yard modernization projects with the support of the Ministry of Defence. Further, initiatives have also been taken by Defence PSUs with support of the Ministry to induct modern build technologies for faster construction of naval warships.

This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Ramdas Agarwal in Rajya Sabha today.