Indian MoD invites proposals for procurement of vessels

3 July 2019 (Last Updated July 3rd, 2019 10:58)

The Indian Ministry of Defence (MoD) has issued requests for proposals (RFPs) for four shipbuilding projects of various vessels for the country's navy and coastguard. 

The Indian Ministry of Defence (MoD) has issued requests for proposals (RFPs) for four shipbuilding projects of various vessels for the country’s navy and coastguard.

Through these projects, the government intends to boost the domestic shipbuilding industry under the Make in India programme. The RFPs have a combined value of Rs150bn ($2.17bn).

The MoD issued an RFP for six next-generation missile vessels (NGMVs) to seven shipyards. The remaining three RFPs have been issued to shortlisted Indian shipyards. These cover the construction of eight fast patrol vessels (FPVs), 12 air cushion vehicles (ACVs) and eight missile/ammunition barges.

The RFP for ACVs also includes the initial requirement of six ACVs for the Indian Army.  The ACVs will be used for military and coastal surveillance, as well as civil transportation, disaster management and tourism.

Furthermore, the ministry intends to issue additional RFPs for more shipbuilding projects in the coming months.

The MoD worked in partnership with the Indian Navy and Coast Guard to streamline the process of qualifying the shipyards for the issue of RFPs.

The objective behind this exercise is to enable greater participation of Indian shipyards.

In a statement, the MoD said: “This led to rationalisation of guidelines for capacity assessment of shipyards that have been promulgated recently.

“Rationalisation and promulgation of financial selection criteria have paved the way for issue of RFPs for a large number of shipbuilding projects that have been pending.”

Smaller shipyards will stand to benefit from the process as only those with an average annual turnover of less than Rs5bn ($724.6m) will be able to participate in projects with the anticipated outflow of less than Rs750m ($10.86m) a year.

The government has incorporated a provision that allows Indian shipyards to collaborate with foreign players to develop the design of these vessels.