Indian Navy has cautioned Reliance-controlled Pipavav shipyard in Gujarat of penalties if it delays the delivery of ships and other contract works.
The shipyard has not been able to meet deadlines, which in turn has adversely affected the operational capabilities of the Navy, naval officials were quoted by The Hindu Friday.
Reliance-controlled Pipavav unit, however, is confident of delivering on time. Reliance Defence and Engineering Ltd. (RDEL), which took over Pipavav in early 2016, insists that the shipyard has pulled up after the new management took over and that it is confident of delivering on time.
The shipyard is now engaged in the construction of five naval offshore patrol vessels (NOPV) and maintenance of at least two other naval ships. Further the shipyard is also bidding for several major contracts.
The company’s involvement with the military is believed to outweigh work by any other private Indian shipyard.
In response to a detailed questionnaire, the Navy said there had been a 65% progress on the first two NOPVs and 30% on the other three NOPVs as on February 16. However, this is after a delay of more than two years.
The original contract for the NOPVs was signed in 2011, with the first boat to be delivered by early 2015. The first two NPOVs are scheduled to be launched by May 2017 and delivered by October and December 2017, according to fresh revised timeline provided by the Navy,
The remaining three are expected by November 2017 and delivered by April, June and August 2018.
Despite speculation in the past few years about the possibility of the Navy imposing a financial penalty on the shipyard, there has been no such decision yet.
The firm had accelerated work since the RDEL took over, a Reliance official said.
“It’s a contractual issue. All these damages are based on discussions ... there is a standard procedure. They know what we have done and how much we have done and then we will deal with whatever it is,” he said about the penalty clause.
Bangladesh has taken a project to construct frigates at Chittagong Dry Dock run by its navy and will achieve self-reliance in building warships, Bangladeshi Prime Minister Sheikh Hasina said. The present government has already taken various short and long-term plans to build Bangladesh Navy as an effective “three-dimensional force”
Indias firms Reliance defense and L&T are likely to compete for bagging Rs 20000 crore ( US $3 billion) contract from the country's Defense ministry to build four amphibious warships. Commercial bids submitted by the two private firms for the largest defence project under Make in India will be opened in the next three months
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Reliance Infrastructure (RInfra)-promoted Reliance Aerostructure and Dassault Aviation have formed Joint Venture known as 'Dassault Reliance Aerospace Limited'. Eric Trappier, Chairman of Dassault Aviation France, will be the Chairman, and Anil D Ambani, Chairman of Reliance Group, will be the Co-Chairman of Dassault Reliance Aerospace Limited DRAL
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