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MoD to take over Vizag's Hindustan Shipyard
BS Reporter / Kolkata Aug 26, 2009, 00:57 IST

Keen to increase the Indian Navy’s blue-water capability and improve self-sufficiency in defence production, the Ministry of Defence is to take over the Hindustan Shipyard at Visakhapatnam from the Union shipping ministry. The matter is before the Union Cabinet.

“It will (when done) produce for defence requirements”, said M M Pallam Raju, minister of state for defence. The Cabinet has to resolve the issues on compensating the shipping ministry, he said.

The move was stalled during the earlier government’s tenure after former shipping minister T R Baalu had refused to let go of the shipyard, saying shipbuilding capacity would be hit considerably. An empowered group of ministers headed by Pranab Mukherjee now the finance minister, was formed last year to sort the issue.

Hindustan Shipyard has built 150 ships and repaired nearly 1,800 ships so far. It can offer services in design, construction, conversion and repairs. Currently, there are three defence shipyards — Garden Reach Shipbuilders and engineers(GRSE) near Kolkata, the Goa Shipyard and Mazagon Docks Ltd at Mumbai. “The prime defence needs right now are for stealth frigates, aircraft carriers, submarines, and also anti-submarine warfare vessels”, Raju told reporters at GRSE today.

The GRSE is now building four anti-submarine warfare corvettes and 10 fast attack craft for the Navy, besides 88 fast interceptor boats for the home ministry. The deliveries of the ASWCs will start from 2012 and continue till 2015.

Raju also said that as the ministry is keen to augment indigenous manufacturing of defence equipment, it is now all set to get the initial operational clearance for manufacturing light combat aircraft by 2010-11, to be inducted in the Air Force by 2012. “We are also working on an agreement with Russia to procure next generation defence aircraft, as well as transportation aircraft,” Raju said.

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