Mazagon Dock Shipbuilders, India's only shipyard to build both destroyer warships and conventional submarines for the Navy, is fully geared to meet the competition from the private sector, claim officials.
The Mumbai-based dock, which recently concluded expansion and modernisation with Rs 900 crore, is currently building four P-15B destroyers, four P-17A stealth frigates and five Scorpene class submarines for the Indian Navy. These orders are worth Rs.52,760 crore. Normally orders from the Ministry of Defence are awarded to Mazagon dock, which was taken over by the government of India in 1960, on nomination basis or through limited tenders.
"We welcome competition and work like any other professional technology company. Our navy and government are most stringent on quality norms and we have the expertise, infrastructure, technology and people to meet those demands," says Captain Rajiv Lath, director, submarine and heavy engineering, Mazagon Dock.
Officials said negotiations are on with overseas countries for undertaking commercial ship building and exports. Further, the dock now undertakes refit and repair of submarines and warships. The dock is also exploring possibilities of developing a Greenfield shipyard at Nhava in Navi Mumbai with a ship lift, wet basin, workshops, stores and buildings and a ship repair facility spread over 40 acres.
Since 1960, it has built 795 vessels including 25 warships from advanced destroyers to missile boats and three submarines. It has a technology transfer agreement with naval group of France for Scorpene submarines and has already delivered one, INS Kalvari. INS Karanj is likely to be delivered next year. It takes about four years to build a submarine and another two years of intense testing before it is delivered to the navy.
Mazagon Dock had revenues of Rs 4,295 crore and profits of Rs 549 crore in 2016-17. As part of the government policy, the dock is planning to soon raise over Rs 750 crore through an initial public offering (IPO).
Mazagon Dock was started way back in 1774 to service ships of the British East India Company. It passed through various ownerships like the P&O Lines and the British India Steam Navigations Company. The yard was taken over by the Ministry of Defence in 1960 to further its warship development programme.