Hindustan Shipyard Ltd is experiencing most difficult time with hectic lobbying by the private shipyards to knock it down from the race to bag the Rs.60,000-crore contract for construction of submarines and the announcement by Union Minister for Heavy Industries Anant Geete to shut it down for recurring losses.
HSL, which was set up in 1941 in recognition of strategic location of Visakhapatnam, is sick due to which it was shifted from the Ministry of Shipping to the Defence in February, 2010, with the promise that it would be used to cater to the needs of Navy.
HSL created submarine repair facilities by investing Rs.50 crore. It also formed a consortium with BHEL and Midhani and entered into an agreement with shipping giant Hyundai of Korea to strengthen its cause to bag submarine orders under ‘Make in India’ programme.
Advantage
Availability of manpower -- retired naval personnel experienced in submarine repairs and building nuclear powered submarine at another shipyard in the city -- is considered a big advantage for HSL in taking up Greenfield submarine construction.
Owing to the management efforts, the net loss of HSL reduced year-on-year from Rs.86 crore in 2011-12, to Rs.55 crore in 2012-13 and Rs.46 crore in 2013-14.
The twin developments – Mr. Geete’s announcement in Parliament and reports on short-listing of two private shipyards for the submarine deal – shattered the morale of the HSL employees, who threatened to take to streets if the yard is closed. “It’s a major industrial establishment in Visakhapatnam which spurred growth in the city and its closure will not be allowed,” veteran stevedore Garuda Pattabhiramayya told The Hindu .
CMD clarifies
Terming the closure reports untrue, HSL Chairman and Managing Director Rear Admiral N.K. Mishra said they had been asked to submit some inputs by the core committee on submarines. He said the revival of HSL was under consideration of the Ministry of Defence and the reports on rejection of HSL efforts to bag submarine deal were part of malicious campaign to destabilise HSL.
It’s a major industrial establishment in Visakhapatnam and its closure will not be allowed
Garuda Pattabhiramayya
Stevedore
