India to allow private shipyards to manufacture naval ships

In a major policy shift, the Indian government will allow private Indian shipyards to construct naval ships, an activity which was previously limited to state owned ship building companies. This will open up the field for foreign investment in Indian shipyards and see a major infusion of technology and finance into the domestic shipbuilding industry. The Indian Navy has one of the most ambitious ship induction programs in the world as part of its master plan to become a blue water navy in the 21st century. The Defence Minister A K Antony has said that starting Janaury 2011, state owned shipyards will have to compete with private ones for ship building contracts. "Government has taken a decision that from January 2011 onwards, the Defence Acquisition Council (DAC) will not give any nominations to the defence shipyards for Naval projects and they will have to compete with the private shipyards for the tenders," Antony said Wednesday in a report quoted to a news agency. The Government will procure equipment for the Navy under 'Buy Indian Make Indian' category where both PSU and private sector shipyards will have to compete for tenders, he said. He said initially the policy would be applicable for Navy only, gradually it would be extended to acquisition by the Indian Army and Air Force as well forces.