A policy for defence joint ventures to deal with any loopholes and security related issues in such tie-ups will be announced soon.
Defence minister AK Antony told mediapersons on Tuesday that the joint venture between Pipavav Shipyard and Mazagon Dock had been put on hold as there were complaints over lack of transparency in the selection process for the tie-up. ?We will not compromise on transparency. Other major private shipyards complained about the private company. We want policy guidelines. We are preparing a policy for joint ventures which will be announced soon.?
?Right now all the government shipyards have their order books full and we are not against joint ventures. However, if there are loopholes they can be misused by anybody,? he added.
A senior ministry official told FE on condition of anonymity: ?Preparations are in full swing to make the PPP more dynamic and broad based. As the JVs are approved on case-to-case basis, a proper policy is going to be announced to deal with loopholes and violations of security.?
The controversy arose following an announcement by Pipavav Shipyard that it had been selected by Mazagon Dock as its equal joint venture partner for construction of warships and submarines. Experts say the $11-billion submarine market of India must be directed towards the Indian private sector to keep pace with the Navy’s modernisation programme.