NEW DELHI — The Indian Ministry of Defence has directed future warship and submarine building orders be given only to domestic shipyards.
The Navy has potential orders worth more than US $50 billion over the next 10 years for ship and submarine builds, said a Defence Ministry source.
However, the $12 billion purchase of six conventional submarines with air independent propulsion, for which a request for proposals is being prepared, will still allow foreign participation in the design phase, although the subs will be built only by domestic shipyards, the MoD source added.
As state-owned shipyards have their hands full, private sector yards, which have the facilities but fewer orders, are likely to be the biggest beneficiaries under the new directive, analysts said.
“Private shipyards have not been given adequate opportunity to prove their mettle. There is no doubt that they are more modern and perhaps more efficient and given an opportunity will perhaps outperform the state-owned shipyards. It is too early to judge them as the state-owned shipyards have a five-decade lead in shipbuilding,” said Anil Jai Singh, retired Indian Navy commodore.
Navy officials and defense analysts said India has the capability to build warships from the design stage, but will have to rely on imports to meet its weapon needs.
Read More:India To Limit Ship Buys to Domestic Yards.