India-Turkey Sign $2.3B deal to build Fleet Support Vessels

India and Turkey have finalized a $2.3 billion (INR 17,494 crore) deal to jointly build five 45,000-tonne Fleet Support Vessels (FSVs) in India.

The project to manufacture the FSVs will be undertaken by India’s Hindustan Shipyard Limited (HSL) and Turkish Shipyards.

A formal contract was signed in February after being put on hold in October, over references made to the Kashmir issue by Turkish and Pakistani leaders- President Recep Tayyip Erdogan and Prime Minister Imran Khan. “The contract was signed by HSL last month after clearances were given by the Ministry of Defence (MoD). The Ministry of External Affairs was also consulted before the decision was taken,” sources were quoted as saying by Economic Times on Monday.

Turkey’s TAIS was selected last year after it emerged as the lowest bidder for the FSV contract which was given a go-ahead in 2016. The Indian Navy wants to use these boats to carry fuel and other supplies for its warships at sea.