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Offshore Patrol Vessels: L&T builds faster, cheaper than Goa Shipyard

Since PM Narendra Modi inaugurated GSL's indigenous shipbuilding project in November 2016, the shipyard has handed over two OPVs to the ICG and launched the other three

Goa Shipyard, offshore patrol vessel
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GSL on Monday launched the fifth and final Offshore Patrol Vessel out of an order of five such vessels it is constructing for the Indian Coast Guard ICG

Ajai Shukla New Delhi
Goa Shipyard Ltd (GSL) on Monday launched the fifth and final Offshore Patrol Vessel (OPV) out of an order of five such vessels it is constructing for the Indian Coast Guard (ICG). The vessel has been named ICGS Saksham. 

Since Prime Minister Narendra Modi inaugurated GSL’s indigenous shipbuilding project on November 13, 2016, the defence public sector undertaking (DPSU) shipyard has handed over two OPVs to the ICG and launched the other three. “Launching” is a major construction landmark, in which the completed hull is put into water. It is followed by “outfitting” the vessel with its superstructure, electronics and combat weaponry.

“In spite of the ongoing COVID situation and disruptions in supply chains, it is creditable for the shipyard to complete the 100 per cent hull construction and launch the vessel within 18 months from keel laying which was in June 2019. The vessel is in advanced stage of outfitting and will be ready for delivery by October 2021, as per the contractual schedule,” stated the ICG on Monday.

GSL’s OPVs are 2,350-tonne vessels, armed with 30-millimetre guns and equipped with “quick response boats” to handle emergencies along the coast, piracy and anti-terrorism missions.

Speaking at the launch, GSL chief, Commodore BB Nagpal (Retired) stated that more than 70 per cent indigenisation has been achieved for these OPVs. He thanked the ministry of defence (MoD) and ICG for their confidence in GSL.

This “confidence” in DPSI shipyards causes heartburn amongst private shipyards, such as Larsen & Toubro (L&T) and Reliance Naval (RNaval), who claim they can build warships faster, cheaper and better than the public sector yards.

To test this claim, Business Standard compared GSL’s performance in this five-OPV contract to a similar contract L&T won for designing and constructing seven OPVs. The contracts were awarded roughly at the same time: to L&T on March 30, 2015 and on August 26, 2016 to GSL.

GSL’s contract stipulated delivery of the first vessel in 42 months, that is in February 2020 and the second OPV six months later, followed by the remaining three vessels at four-month intervals. As it turned out GSL delivered the first two OPVs – ICGS Sachet and ICGS Sujeet – three months late. It is learnt that the remaining three OPV will breach delivery timelines even more.

Meanwhile, the L&T contract stipulated delivery of the first OPV in 36 months and subsequent vessels at six-month intervals. So far, L&T has delivered five OPVs, all of them ahead of the contracted schedule.  

Another striking difference is the cost at which L&T and GSL are building their respective OPVs. L&T, which won its contract in a competitive tender, is charging the ICG Rs 185.6 crore for each OPV. In contrast, GSL, which was awarded the contract through “nomination” – the MoD’s terminology for handing over contracts to DPSUs without tendering – is charging the ICG Rs 334.5 crore per OPV.

Such a cost differential could only be justified, were GSL’s OPVs to have significantly higher combat specifications, far better performance or a much bigger size than L&T’s. In fact, both builders are delivering very similar vessels.

 

The main difference is that GSL supplies OPVs fitted with a 30-millimetre gun, whereas L&T’s contract requires it to supply fitting for a gun, but not the gun itself. This, however, is not a major difference, since a 30-millimetre gun costs only about Rs 2.5 crore.

The length, beam and draught (minimum depth of water in which the OPVs can operate) of both OPVs are about the same, as are their displacements: 2,147 tonnes for the L&T OPV, compared to 2,350 tonnes for the GSL vessels.

Both vessels have nearly identical maximum and cruising speeds, while the GSL OPV can go 6,000 nautical miles, compared to the slightly lower 5,000 nautical miles endurance of the L&T OPV.

The power generating capability of the L&T OPV is slightly higher than that of the GSL vessel, which is a useful capability, given that modern warships’ combat and navigation sensors, radars and communication suites all consume significant amounts of power.

GSL’s patrol vessel can provide “fly-through” support to a marginally larger helicopter, while the L&T OPV can provide hangar facilities to a marginally larger chopper.