Ananda
The Bunker Group
From Buyer to Builder: The Indian Navy’s Rocky Road to Self-Reliance
From Buyer to Builder: The Indian Navy’s Rocky Road to Self-Reliance
www.orfonline.org
Found this article couple years back, and in my opinion quite honest assessment on the problem face by Indian Shipyard and basically more honest then what you can find in most Indian forums and online media. It is basically put that India yards face not only bureaucratic problems (as much of India it self), but also shipyards that facing efficiency issue, technology catching up, and economics of scale (compare to East Asian Yards).More notable has been RNEL’s failure to deliver the Naval Offshore Patrol Vessel (NOPV)project.[59]A May 2011 contract with the shipyard—then known as Pipavav Defence and Offshore Engineering Company Ltd (PDOEL)—called for deliveries of NOPVs to commence in November 2014 at six-month intervals. By July 2017, RNEL was under considerable financial strain, and could only launch two hulls. Planned deliveries slated to take place from the end of 2018 did not materialise, although the shipyard did build a third NOPV hull sans superstructure by late October 2018.[60] Soon, the navy moved to take “punitive action” against the company, in the form of liquidated damages to the tune of 10 percent of contract value.[61] Whereas RNEL filed for an insolvency proceeding before the Ahmadabad bench of the National Company Law Tribunal, the GoI deferred its decision to cancel Reliance Naval warships deal to allow for a company revival plan.[62]
It's lengthy article but for me somethings that most Asian Yard outside East Asia face. Related to Reliance yard seems the Navy decide to cut losses on the program. However seems final verdict being postponed with Yard revival plan. That kind of language ussualy means the contract dispute will be hold until new investors come and revive the yard under new management. At least that's the language that many contract holders put when they await potential new investors.
The Indian forums not surprisingly not much talk in this matter. Not surprising as many over nationalistic Bharat enthusiasts does want to talk failures projects. However I suspect if there're no new management and investors taking over, then Navy will cut losses by discarded the ships under projects. In some way this is has similarities with Malaysian Boulstead situation. MinDef and government only want to proceed when new management and investors taking over.