The Defence Ministry is looking into Mumbai-based Mazagon Dock Limited’s (MDL) decision to enter into a joint venture (JV) contract with private parties to construct warships.
The Ministry would look into the legal aspects and also whether there would be any violation of rules by a defence public sector enterprise in entering into a JV with private parties, officials said.
The MDL – a defence shipyard – is looking forward to form a JV with Pipavav Shipyard, Larsen and Toubro and ABG Shipyard to construct warships.
Informed sources said the Ministry’s step was to ensure that there was no violation of rules framed earlier this year for defence public sector companies to enter into JVs with private bodies.
The legalities of the proposed contract were being looked into, as a defence company needed to adhere to rules set by the government, the sources said.
The MDL’s JV move was made last year, leading to protests by other private shipyards. Consequently, the Defence Ministry decided to put the matter on hold and issued detailed guidelines for governing any such future move.