In a policy decision that signals a change, Defence Minister Manohar Parrikar on Thursday said the Ministry of Defence was considering offloading the repair of warships to private shipyards as a part of the MoUs with Ministry of Shipping.
“Currently there is no shortage of orders in defence sector and Ministry of Defence (MoD) has its own mechanism to acquire and construct ships. The ministry has already included many private shipbuilders in the production of warships. Due to financial constrains certain private shipyards are unable to deliver these orders in time,” Parrikar said at the Maritime India Summit 2016.
“In order to enhance participation of private sector in warship building, MoD has to partner with Ministry of Shipping,” he said.
He explained that the aim of the Memorandum of Understanding (MoU) would be to improve the financial situation of private shipyards.
Published 14 April 2016, 19:33 IST