INS Jalashwa - Amphibious Transport Dock
VISAKHAPATNAM: After having successfully completed the retrofit of submarine INS Sindhukirti earlier this year, is the tide turning in favour of Hindustan Shipyard Limited (HSL), which has for long been bobbing in troubled waters financially?
According to sources at HSL, the visit of secretary (defence production) Ashok Kumar Gupta to the shipyard is a positive indication of the defence ministry's resolve to revive one of India's oldest shipyards. Sources said that during his day-long visit to HSL, the secretary (defence production) visited the yard to get a first-hand view of the projects being undertaken as well as the infrastructure at the shipyard.
During his interaction with trade union leaders, the secretary (defence production) is said to have assured them that the government would provide a fresh financial restructuring package as well as high value orders for HSL along with advance payment for the orders.
"The secretary was clear that the ministry is interested in reviving the shipyard and is also keen on providing a permanent solution by giving high value orders," said a HSL source. When pointed out that the lack of defence orders had caused difficulty in reviving the yard, the source said, "He said that new orders will be given and the issues being faced by the yard have already been noted by the ministry."
At the same time, HSL officials said that the letter of intent for building two strategic operating vessels (SOVs) at an estimated cost of around Rs 3,000 crore each is expected to be issued by the ministry of defence in another two to three weeks. "Once the letter of intent is issued, HSL will call for an RFP (request for proposal) for designs from consultants for the SOV project," said a senior official. At the same time, he said that HSL is also expected to get orders for the Landing Platform Docks (LPDs) at a cost of around Rs 4,000 crore.
HSL sources said that the yard is now also pushing for orders to build five fleet support ships (FSS) for the Indian Navy at an estimated cost of around Rs 2,000 crore each. "After HSL was transferred from the ministry of shipping to the ministry of defence, the orders for commercial ship building were stopped due to which there was a slump in orders. The shipyard has already bounced back from the damage caused by Hudhud and is now geared up for bigger challenges," another official said, adding that the tie-up with South Korea based Hyundai Heavy Industries will also help HSL plug gaps and imbibe global best practices.