Defence ministry drops contract with Turkish consortium

Visakhapatnam The Ministry of Defence has decided to drop the proposal for design collaboration with TAIS, a Turkey-based consortium, by the Hindustan Shipyard Limited (HSL) for construction of fleet support ships (FSS).

This is evident from an official announcement that the Rs 19,000 crore contract with HSL for construction of five FSS will be a major boost towards achieving self-reliance in defence manufacturing due to ‘indigenous’ design. HSL had agreed for an understanding with TAIS led by Anadolu Shipyard for design collaboration in 2019 after floating a global tender. Before getting the ministry’s nod, there was uncertainty regarding the deal due to Ankara’s stand on Kashmir. Firms from Russia, Germany and Spain in addition to TAIS from Turkey responded to the tender.

The Cabinet Committee on Security’s approved the acquisition of five ships each with a displacement capacity of 44,000 DWT on August 16 last. HSL is a premier shipyard located on the East Coast and set up in 1941, was brought under the administrative control of MoD from the Ministry of Shipping in 2010 due to its strategic importance. Nuclear-powered submarines are being built at the Ship Building Centre located in the close vicinity of HSL and Visakhapatnam Naval Dockyard.

Before the deal with TAIS, top officials from the Hyundai Heavy Industries of Korea had several rounds of discussions with the HSL management in 2014. Its insistence for constructing the first ship among the five FSS in Korea and reservations to share technical know-how finally led the proposal to fall flat. Fleet support ships play a key role for replenishing fuel, ammunition, food and other supplies to the naval ships during their voyage.

According to official sources, the steel cutting on the first FSS is expected in the New Year heralding bright days for HSL. HSL finances are poised to improve with the bagging of order to construct FSS worth Rs 19,000 crore and few other high-value orders.

These ships enhance the strategic reach and mobility of the fleet. The induction of these ships will significantly enhance the blue water capability of the Indian Navy. The ships can also be deployed for evacuation of people and human assistance and disaster relief (HADR) operations.

FSS will be the first-of-its kind to be built in India by an Indian shipyard thus providing a unique distinction on HSL. This project will generate employment of nearly 168.8 lakh man-days over a period of eight years. Local vendors, MSMEs and skilled manpower will be benefited a lot once the construction work starts.

The construction of these ships will provide a new dimension to the Indian shipbuilding industry and encourage active participation of associated industries, including MSMEs. With majority of the equipment and systems being sourced from indigenous manufacturers, these vessels will be a proud flag bearer of ‘Aatmanirbhar Bharat’ in consonance with the ‘Make in India’ initiatives of the government, a communique issued by PIB stated.