For indigenously building ships and other naval crafts, in accordance with the Defence Procurement Procedure, 2011, Chapter-Ill, Procedure for Defence Shipbuilding - Defence shipyards are awarded some contracts on nomination basis while other contracts are awarded on competitive basis. Defence shipyards are participating with private yards in an open competition. In some of the cases they have lost out to private shipyards.
Defence Shipyards quoted for Naval Offshore Patrol Vessels, Barges, Hovercraft, Fast Patrol Vessels, Interceptor Boats, Cadet Training Ships and Fast interceptor crafts but lost to private yards.The Defence shipyards have indicated that major reasons of losing out are:
(i) Higher wage rates for the labour and thereby increase in overheads;
(ii) Longer time taken to procure the materials byobserving the laid down procedures thus pushing up their prices.
To enhance the competitive edge in future, following measures are being undertaken:-
(i) Modernisation of DPSUs including Defence shipyards with latest state-of-the-art facilities and introducing modernintegrated construction methodology,
(ii) Strengthening of design and production facilities,
(iii) Induction of manpower both at the skilled worker level and at management level.
This information was given by Minister of State for Defence Shri MM PallamRaju in written reply to Shri Partap Singh Bajwain Lok Sabha today.
Defence Shipyards quoted for Naval Offshore Patrol Vessels, Barges, Hovercraft, Fast Patrol Vessels, Interceptor Boats, Cadet Training Ships and Fast interceptor crafts but lost to private yards.The Defence shipyards have indicated that major reasons of losing out are:
(i) Higher wage rates for the labour and thereby increase in overheads;
(ii) Longer time taken to procure the materials byobserving the laid down procedures thus pushing up their prices.
To enhance the competitive edge in future, following measures are being undertaken:-
(i) Modernisation of DPSUs including Defence shipyards with latest state-of-the-art facilities and introducing modernintegrated construction methodology,
(ii) Strengthening of design and production facilities,
(iii) Induction of manpower both at the skilled worker level and at management level.
This information was given by Minister of State for Defence Shri MM PallamRaju in written reply to Shri Partap Singh Bajwain Lok Sabha today.