Rs 25,000 crore Navy tender only for private sector: Defence Ministry

Seeking to build capabilities of Indian private sector warship builders, the Defence Ministry has rejected the plea of a state-owned shipyard to participate in the Rs 25,000 crore project to construct four amphibious warfare vessels for the Indian Navy.

The Defence Ministry has decided that only private sector shipyards, including Pipavav, ABG and L and T, along with their foreign partners, would be allowed to take part in the Rs 25,000 crore project for building the four Landing Platform Docks, Navy sources told PTI here.

The Navy had issued tenders to these three private shipyards last year and decided to keep out Cochin Shipyard Limited (CSL), saying it was building the 40,000-tonne Indigenous Aircraft Carrier and it should focus on that major project only for the moment.

However, CSL approached former Defence Minister AK Antony through the Ministry of Shipping and the deal was put on hold to consider whether the tender should be retracted or CSL could also be issued the tender and a committee under an Additional Secretary was formed to look into the matter.

The committee report was presented before the last Defence Acquisition Council (DAC) of the UPA government in February but it was decided that it would be kept on hold.