Our Bureau
09:48 PM, March 1, 2015

India's Defense Acquisition Council (DAC) has awarded INR 30,000 crore (US$4.8 billion) contract for 12 mine countermeasure vessels (MCMV) or minesweepers to Goa Shipyard.

Last November, Defense Ministry had scrapped INR 2,700 crore (US$4.3 billion) for acquiring eight minesweeper vehicles from South Korean firm, Kangnam after the firm had employed middlemen, which is a violation of the tender conditions.

“This deal is of great significance as it will bring in Rs 30,000 crore to spur Goa’s shipbuilding industry with technology that is not available in any other part of the country. It will be a major game changer in a system where we waited 15 years,” GSL Chairman and managing director Shekhar Mittal said.

Technology employed in the manufacturing of the vessels is currently available in only six countries will be procured through global tenders. “This technology is available only in six countries and we will import it and make the vessels locally as well as outsource it to Goan companies, thus helping in spurring the shipbuilding industry in Goa,” Mittal said.

Earlier last year, the deal for eight MCMV from South Korean firm Kangnam Corporation were scraped as Defence Minister Manohar Parrikar discussed the idea of giving the order to Goa Shipyard.

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