Bharati Shipyard slams Mazagon Dock's JV with Pipavav

The controversy over Mazagon Dock's choice of Pipavav Shipyard as its naval joint venture partner is getting bigger and deeper, as after ABG Shipyard and Larsen and Toubro (L&T), another bidder Bharati Shipyard, has also raised questions over the selection process.

Seeking clarity on the issue, Bharati Shipyard in its letter, dated September 16, to MDL said that it has made a presentation on the proposal to form a JV with MDL on August 23 and was asked by the defence PSU two days later to provide further details and terms of reference for the formation of JV.

"Subsequently, there were media reports on September 10 and 11 that MDL has already selected the JV Model of partnership and Pipavav Shipyard as one of their partner.

"We would, therefore, be grateful if you could kindly clarify the above and as to the date by which date we, i.E, Bharati Shipyard, should submit our proposal for joint venture," the company said in the letter, dated September 16.

Last week, L&T and ABG Shipyard had questioned the selection process, while pointing out the lack of transparency over the selection of Pipavav Shipyard as Mazagon Dock Ltd's (MDL) JV partner.

In their separate letters to Mazagon Dock, both the companies had said that they were not given chance to respond to the proposal of becoming the JV partner despite making presentations and submitting their expression of interest (EoI).

Both the companies had also requested the defence PSU to reconsider its decision and forwarded a copy of their letters to Defence Secretary, Defence Production Secretary and Chief of Naval Staff.

Besides this, the two companies pointed out that neither any guideline nor any specific time line was mentioned for submitting the JV proposal.

The controversy arose following an announcement of Pipavav Shipyard on September 12, that it has been selected by the MDL as its equal joint venture partner for construction of warships and submarines among others.

The move would be the first example of public-private partnership in the defence sector.

Officials of MDL were not available for comment on the issue.