News Story: Indian Navy to buy vessels from private shipyards in policy change

By: Vivek Raghuvanshi

NEW DELHI — In a departure from an earlier policy of awarding big-ticket defense programs to state-owned companies on a nomination basis, the Indian Ministry of Defence has decided to source four landing platform docks from private defense companies.

"MoD will shortly invite revised commercial bids for purchase of four LPD vessels costing around $3 billion from two shortlisted private defense companies because the price validity has expired [last month] and government-owned companies have been dropped from the program," according to a senior MoD official.

Under the 2013 tender, only two LPDs were to be built by a domestic private sector company and the remaining two vessels on nomination basis by state-owned company Hindustan Shipyard Limited.

Only domestic defense companies Larsen & Toubro and Reliance Defence and Engineering Limited, or RDEL — formerly known as Pipavav Defence and Offshore Engineering — could clear the financial and technical compliance completed last year.

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News Story: India, South Korea sign agreement to build warships

By: Vivek Raghuvanshi

NEW DELHI — India and South Korea inked a memorandum of understanding on Friday in India to cooperate in shipbuilding for military use. 

The memorandum was signed by both India's secretary of defence production, Ashok Kumar Gupta, and South Korean Minister of Defense Acquisition Program Administration Chang Myoung-jin in India "for Defence Industry Co-operation in Shipbuilding," according to an Indian Ministry of Defence news release.

India has chosen state-owned Hindustan Shipyard Limited, or HSL, to cooperate with a shipyard nominated by South Korea. 

"The Inter-Governmental MoU, was conceived under the overall umbrella of the 'Special Strategic Partnership' between both sides as declared in the Joint Statement of the Prime Minister of India and the President of [South Korea] in May 2015," the MoD release said. 

An MoD official explained that the cooperation is part of the Make in India policy, under which warships will be built at domestic shipyards with South Korea's help.

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News Story: Indian Navy to Buy Seven Corvettes for $2 Billion

By: Vivek Raghuvanshi

NEW DELHI - The Indian navy plans to acquire seven new-generation guided missile corvettes at a cost of $2 billion to replace its Russian-built 1241-RE missile boats, allowing only domestic companies to bid under the government's "Make in India" rules.

While the ships themselves must be constructed at an Indian shipyard, some major systems of the boats, particularly the weaponry, will be imported, an Indian Navy official said.

"I suppose most of the leading European and Russian shipyards will be in the fray," says Anil Jai Singh, retired Indian navy commodore and defense analyst.

"The imports could be the Short Range Surface to Air Missile SRSAM, surveillance radars, torpedoes and engines. The rest can be Indian -- that is, the gun, surface-to-surface missile systems, rockets, sonars, most of  the navigation communications and electronic-warfare systems," says Sujeet Samaddar, another former Indian navy official and defense analyst.

The Indian sea service wants the new corvettes to have longer range than the old boats, capable of offensive nuclear submarines attack, anti-submarine warfare, local naval defense, maritime interdiction operations, and visit, board, search, and seizure (VBSS) operations, according to the a request for proposals sent to Indian industry.

"Missile corvettes are agile high-speed ships with considerable firepower, ideal for a littoral environment. These corvettes will probably have a potent anti-ship missile capability with an adequate point defense missile system and incorporating advanced stealth technologies," says Singh. 

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News Story: Indian Naval LPD Program Making Headway With 2 Domestic Vendors

INS Jalashwa (Image: Wiki Commons)

By: Vivek Raghuvanshi

NEW DELHI — The Indian Navy may as early as this month begin the commercial bidding process for its $2.6 billion program to build four 20,000-ton landing platform docks (LPD), following the final selection of two domestic vendors. 

Only Reliance Defence and Engineering Limited (RDEL) — formerly known as Pipavav Defence and Offshore Engineering — and private sector business Larsen & Toubro (L&T) cleared the financial and technical tests from September. A third vendor, ABG Shipyard, which has a technical relationship with Alion of the United States, could not clear the tests because it failed to restructure its debts, a senior Indian Ministry of Defence (MoD) official said. 

L&T has a tie-up with Navantia of Spain, and RDEL with DCNS of France. 

No ABG Shipyard executive would comment on the outcome of the Indian Navy's routine technical and financial tests. 

The Navy floated the tender in 2013 for production of four LPDs, and bids were sent to domestic shipyards, L&T, RDEL, and ABG Shipyard. 

Under the program, two LPDs will be built by a private shipyard, and then state-owned Hindustan Shipyard Limited will build the remaining two LPDs at the same cost. 

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News Story: India's HSL May Seek Foreign Help To Build Midget Subs

By: Vivek Raghuvanshi

NEW DELHI — India's state-owned shipyard is to float a global tender in the next two months seeking consultancy to help build two midget submarines for the Indian Navy, according to a source in the Ministry of Defence (MoD). 

Hindustan Shipyard Limited (HSL) was nominated this month to be awarded the $400 million deal to build two midgets, and the tender will be formally awarded in the next one month, the MoD source added. 

For the Navy's Marine Commando Force, the midgets will transport armament and equipment from the mother craft to attack targets such as ships riding at anchor and coastal installations, according to a Navy official. The subs will also carry out covert surveillance attacks in shallow waters, the official added. 

However, domestic shipyards are unhappy over the MoD's decision to award the tender to HSL without competition. 

An executive with the privately owned shipyard Larsen &Toubro (L&T) questioned the ministry's move to nominate HSL, "which has no technical know-how or skill to build midgets." 

"Now HSL will hunt overseas for technical consultancy to build the midgets. This is not in the spirit of Make in India policy," the L&T executive said. "L&T has already made known its displeasure [about the tender nomination] to MoD through industry associations." 

The executive said the midget program should have been put to competition. "HSL lacked orders and was given the midgets order (in 2012). However, since then HSL has got huge orders for fleet support ship as well as has a promise for two landing platform decks (dock)," the executive said. 

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News Story: Domestic Shipyards To Build All Indian Naval Warships

Indian built Kolkata class Destroyer

Vivek Raghuvanshi

NEW DELHI — India's domestic shipyards are meeting all warship requirements of the Indian Navy, according to the government.

Indian Deputy Defense Minister Rao Inderjit Singh informed the upper house of Parliament on Tuesday that all major warships and submarines currently under construction are being built at state-owned and private domestic shipyards.

"A comprehensive assessment of the modernization needs of the defense shipyards has been made based on the requirement of the ongoing and future projects. The modernization program is intended to increase productivity and reduce build periods through upgradation of existing infrastructure, enhancement of capacity and incorporation of 'state of the art' shipbuilding technology," said an Indian Ministry of Defence press release.

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Editorial: India's Next Warships and Submarines Will Have to be Built at Home

Mazagon Dock Ltd launches 1st Scorpene class Submarine

By Ankit Panda

India’s next warships and submarines will have to be built at Indian shipyards, per a new directive.

India’s Defense Ministry has decided that its orders for future ships, including submarines, will be exclusively available for domestic shipyards, according to a Defense News report. The Indian Navy could potentially have in excess of $50 billion in contracts over the next 10 years for new ships and submarines.

India’s navy is embarking on a major indigenous modernization effort. As The Diplomat reported recently, the Indian government cleared plans for an $8 billion indigenous development program for important naval assets. This included six nuclear-powered submarines and seven stealth frigates.

In fall 2014, India’s Defense Acquisition Council (DAC) approved a $12 billion project for six conventional submarines. According to the Defense News report, this project will still allow the participation of foreign vendors “in the design phase.” The submarines will have to be built in Indian shipyards.

Read the full story at The Diplomat