Cash-starved Hindustan Shipyard Limited is targeting a turnaround on the strength of a likely collaboration with global shipping giant Hyundai Heavy Industries (HHI), which is expected to extend high-end assistance in warship construction.
This optimism in the Vizag-based ship-builder is the result of Prime Minister Narendra Modi’s talks with top executives of HHI during visit to South Korea earlier this week.
To take things forward, a task force team will be formed to finalise the nitty-gritty of cooperation between the two shipyards and consultations will be opened with top-ranking officials of the Indian Navy.
HSL Chairman-cum-Managing Director Rear Admiral N.K. Mishra told The Hindu on Thursday that a high-level team from HHI is expected to visit HSL shortly to finalise the modalities.
“We are delighted. It’s a very big development for HSL, which has been struggling for survival for want of high-value orders,’ he said.
Cooperation between the two shipyards is expected to bring down the time-frame for construction of warships from five years to two years.
The Indian ship-builder had already signed a memorandum of understanding with HHI on cooperation in submarine building in September. Now moves are afoot to widen the agreement to include warship construction.
Hindustan Shipyard expects its submarine deal with HHI to help it win orders from the Indian Navy. The development brightens its prospects of bagging orders for futuristic submarines from the Indian Navy for which it is in a race with L&T, Pipavav Defence and other Indian defence PSUs. The Navy has plans to construct six submarines under IN 75 (P) with a total investment of around Rs. 60,000 crore. HSL is hoping to bag orders for two midget (mini) submarines at a cost of Rs. 3,000 crore.
To secure orders under IN 75 (P), HSL has already formed a consortium with BHEL and Mishra Dhatu Nigam Limited (MIDHANI).
It’s a very big development for HSL, which has been struggling for survival for want of high-value order.
Rear Admiral N.K. Mishra
HSL Chairman-cum-Managing Director
