Press Information Bureau English Releases

There have been initial delays in modernization, programmeme of Mazagon Docks Limited (MDL). However, the delay in Modernization Programmeme has not contributed directly to thedelayin ongoing warship construction projects.

The major reasons for delay in implementing the modernization programmeme of MDL are-.

(i) MDL could not pursue creation of Modular Shop, Cradle Shop, Wet Basin and Stores primarily because of non-availability of land, want of permission from Mumbai Port-Trust and lack of adequate funds in the initial stage.

(ii) The Goliath Crane which was tendered out in June, 2005 and August, 2006 was re-tendered again for the third time in January, 2007 due to non-availability of qualified contractors who could meet the prequalification requirement. The contract was signed on 6th August, 2009.

(iii) The tender for the Wet Basin was issued in August, 2006. However, the single qualified bid could not be accepted due to high price. It was re-tendered again in June, 2007 and subsequently contract was placed only in August, 2008.

(iv) Building and ancillary works were tendered in December, 2006 but the single bid received did not meet the qualification criteria. Subsequently, it was re-tendered and the Letter of Acceptance was placed in June, 2009.

Stealth frigate (Project-17) and Destroyers (P-15A) projects are running behind schedule due to delay in supply of high quality steel for warships, delay in finalization and delivery of major weapons, sensors and propulsion system through indigenous/foreign sources. Two out of three Stealth frigates have been delivered and the third Stealth frigate is scheduled to be delivered in the current financial year. All efforts and remedial measures have been taken to expedite early delivery of system/equipment in respect of Destroyers (P-15A) projects.

There are no cost over runs due to delay in completion of projects and hence no loss to Government.

Construction projects at other Government Shipyards that are running behind schedule are :

(i) Hindustan Shipyard Ltd: Construction of 53K DWT Bulk Carrier, Inshore Patrol Vessels, Bollard Pull Tug are running behind schedule due to design issues, receipt of material and productivity on account of aging infrastructure.

(ii) Goa Shipyard Ltd: There is a delay in construction of Naval Offshore Patrol Vessels (NOPV) primarily due to failure on the part of nominated indigenous supplier to deliver the gearboxes. The gearboxes have been ordered from an OEM and the first gearbox is scheduled to be delivered by early December 2011, which will enable delivery of first NOPV by November, 2012 followed by balance three NOPVs at an interval of 6 months thereafter.

This information was given by Minister of State for Defence Shri MM PallamRaju in written reply to Shri PiyushGoyal in Rajya Sabha today.

PK /NN
(Release ID :77405)