Make in India: Indian and Turkish shipyards close contract for building FSS ships for the Indian Navy

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Published: July 28, 2020 3:51 PM

The local industries of cable laying, zonal painting and blasting as well as related small scale industries will get a lot of work.

This is the first time at a shipyard from Turkey is participating in a defence contract in India.This is the first time at a shipyard from Turkey is participating in a defence contract in India.

The Hindustan Shipyard Limited (HSL) is going ahead with Turkish shipyard partner M/S Anadolu shipyard after signing a contract with them for technical collaboration for enabling the shipyard to build five fleet support ships. Confirming this, a senior official said that “The total initial estimated project cost is about Rs 10,000 crore for the 45,000-ton fleet support ships (FSS) for the Indian Navy. The contract with the Ministry of Defence (MoD) is expected to be inked within the next 6-8 months.”

“Though the contract is between the two shipyards, it is a good sign that the Defence ministries of both countries are onboard for this `Make in India’ project.”

As was first reported by Financial Express Online in 2019, the Turkish Shipyard was L1 and had technically qualified for the FSS project for the Indian Navy. In fact, it was down-selected from among three companies who had made the cut earlier.

Who all were in the race?

In the initial stage, seven global companies had responded to the Request for Proposal (RFP) and these included Italy based Fincantieri, Navantia from Spain, Rosoboronexport (ROE) from Russia, the German ThyssenKrupp Marine Systems (TKMS), and Turkey’s Anadolu Shipyard. The RFP was for the construction of five ships under the FSS project and was estimated to be at a cost of $2.3 billion.

At the end of talks and negotiations, only three companies were shortlisted and these were TKMS, ROE and Turkey’s Anadolu Shipyard.

The contract between the two shipyards was inked after the detailed analysis was done of the technical and financial aspect. There were a series of discussions related to price and ensured that all requirements were met before the contract was inked between the two yards recently.

This is the first time at a shipyard from Turkey is participating in a defence contract in India. As has been reported by Financial Express Online, the Anadolu Shipyard is part of TAIS industrial group. And the discussions were with the shipyard and not the TAIS group.

What will the Turkish yard do?

This shipyard will be giving the ship design, provide technical assistance and also supply the key machinery equipment (KME).

And, the HSL will be providing the latest technology which will include the pre-outfitting and the modular construction. Also, HSL will follow the best shipbuilding practices.

More about the project?

All the components onboard the ships will be made locally in India and the construction of five ships of about 45,000 tons full load displacement will help in giving a fillip not only to HSL but the local small and local companies will be playing a critical role in this huge project.

Even the steel used in the shipbuilding will be from India.

The local industries of cable laying, zonal painting and blasting as well as related small scale industries will get a lot of work.

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